Evolent Health (EVH) and Cotiviti (NYSE:COTV) Financial Contrast

Cotiviti (NYSE: COTV) and Evolent Health (NYSE:EVH) are both healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.

Insider & Institutional Ownership

85.6% of Cotiviti shares are held by institutional investors. Comparatively, 95.4% of Evolent Health shares are held by institutional investors. 15.8% of Cotiviti shares are held by company insiders. Comparatively, 8.8% of Evolent Health shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Cotiviti and Evolent Health, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cotiviti 0 2 7 0 2.78
Evolent Health 0 0 13 0 3.00

Cotiviti currently has a consensus target price of $41.14, indicating a potential upside of 25.47%. Evolent Health has a consensus target price of $27.40, indicating a potential upside of 96.42%. Given Evolent Health’s stronger consensus rating and higher probable upside, analysts plainly believe Evolent Health is more favorable than Cotiviti.

Profitability

This table compares Cotiviti and Evolent Health’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cotiviti 13.86% 13.61% 6.62%
Evolent Health -15.86% -5.05% -3.96%

Earnings and Valuation

This table compares Cotiviti and Evolent Health’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cotiviti $625.16 million 4.84 $48.85 million $0.98 33.46
Evolent Health $254.19 million 4.24 -$159.74 million ($1.13) -12.35

Cotiviti has higher revenue and earnings than Evolent Health. Evolent Health is trading at a lower price-to-earnings ratio than Cotiviti, indicating that it is currently the more affordable of the two stocks.

Summary

Cotiviti beats Evolent Health on 9 of the 13 factors compared between the two stocks.

Cotiviti Company Profile

Cotiviti Holdings, Inc. is a provider of analytics-driven payment accuracy solutions. The Company focuses primarily on the healthcare sector. The Company operates through two segments: Healthcare, and Global Retail and Other. Through its Healthcare segment, the Company offers prospective and retrospective claims accuracy solutions to healthcare payers in the United States. The Company also provides analytics-based solutions unrelated to its healthcare payment accuracy solutions in the United States. Through its Global Retail and Other segment, the Company provides retrospective claims accuracy solutions to retailers primarily in the United States, Canada and the United Kingdom, as well as solutions that manage payment networks for a range of clients. The Company leverages its technology platform, configurable analytics, information assets and expertise in healthcare reimbursement to help its clients develop their claims payment accuracy.

Evolent Health Company Profile

Evolent Health, Inc. is engaged in healthcare delivery and payment. The Company supports health systems and physician organizations in their migration toward value-based care and population health management. The Company provides an end-to-end, technology-enabled services platform for providers. The Company’s platform, powered by its technology, processes and integrated services, enables providers to migrate their economic orientation from fee-for-service (FFS) reimbursement to payment models that reward value-based payment models. The Company’s services include providing its customers, with a population management platform, integrated data and analytics capabilities, pharmacy benefit management (PBM) services and comprehensive health plan administration services. Its value-based operations are empowered and supported by Identifi. Identifi is the Company’s technology platform that aggregates and analyzes data, manages care workflows and engages patients.

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