Elevance Health (NYSE:ELV – Get Free Report) and DocGo (NASDAQ:DCGO – Get Free Report) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.
Risk and Volatility
Elevance Health has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, DocGo has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.
Profitability
This table compares Elevance Health and DocGo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Elevance Health | 2.84% | 16.17% | 5.78% |
| DocGo | -14.02% | -9.11% | -6.44% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Elevance Health | $177.01 billion | 0.47 | $5.98 billion | $24.46 | 15.19 |
| DocGo | $616.55 million | 0.15 | $19.99 million | ($0.52) | -1.80 |
Elevance Health has higher revenue and earnings than DocGo. DocGo is trading at a lower price-to-earnings ratio than Elevance Health, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
89.2% of Elevance Health shares are held by institutional investors. Comparatively, 56.4% of DocGo shares are held by institutional investors. 0.3% of Elevance Health shares are held by insiders. Comparatively, 3.8% of DocGo shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Elevance Health and DocGo, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Elevance Health | 1 | 11 | 12 | 0 | 2.46 |
| DocGo | 1 | 4 | 2 | 0 | 2.14 |
Elevance Health presently has a consensus target price of $397.79, indicating a potential upside of 7.04%. DocGo has a consensus target price of $3.21, indicating a potential upside of 243.14%. Given DocGo’s higher probable upside, analysts clearly believe DocGo is more favorable than Elevance Health.
Summary
Elevance Health beats DocGo on 11 of the 14 factors compared between the two stocks.
About Elevance Health
Elevance Health, Inc., together with its subsidiaries, operates as a health benefits company in the United States. The company operates through four segments: Health Benefits, CarelonRx, Carelon Services, and Corporate & Other. It offers a variety of health plans and services to program members; health products; an array of fee-based administrative managed care services; and specialty and other insurance products and services, such as stop loss, dental, vision, life, disability, and supplemental health insurance benefits. The company operates in the pharmacy services business; and markets and offers pharmacy services, including pharmacy benefit management, as well as home delivery and specialty pharmacies, claims adjudication, formulary management, pharmacy networks, rebate administration, a prescription drug database, and member services. In addition, it provides healthcare-related services and capabilities, including utilization management, behavioral health, integrated care delivery, palliative care, payment integrity services, subrogation services, and health and wellness programs, as well as services related to data management, information technology, and business operations. Further, the company is involved in the National Government Services business. The company provides its services under the Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon brand names. The company was formerly known as Anthem, Inc. and changed its name to Elevance Health, Inc. in June 2022. Elevance Health, Inc. was incorporated in 2001 and is headquartered in Indianapolis, Indiana.
About DocGo
DocGo Inc. provides mobile health and medical transportation services for various health care providers in the United States and the United Kingdom. The company's transportation services include emergency response services; and non-emergency transport services comprise ambulance and wheelchair transportation services. It also offers mobile health services through its platform that are performed at home, offices, and other locations; event services, which include on-site healthcare support at sporting events and concerts; and total care management solutions comprising healthcare services and ancillary services, such as shelter. DocGo Inc. was founded in 2015 and is headquartered in New York, New York.
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