Premier (PINC) & Evolent Health (EVH) Head-To-Head Analysis

Premier (NASDAQ: PINC) and Evolent Health (NYSE:EVH) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, profitability, institutional ownership, earnings and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Premier 23.33% -21.96% 11.48%
Evolent Health -12.11% -2.16% -1.73%

Insider & Institutional Ownership

43.5% of Premier shares are held by institutional investors. 17.5% of Premier 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 endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Premier has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500. Comparatively, Evolent Health has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Premier and Evolent Health, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Premier 0 6 9 0 2.60
Evolent Health 0 0 12 0 3.00

Premier currently has a consensus price target of $37.13, suggesting a potential upside of 16.16%. Evolent Health has a consensus price target of $25.33, suggesting a potential upside of 28.92%. Given Evolent Health’s stronger consensus rating and higher possible upside, analysts clearly believe Evolent Health is more favorable than Premier.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Premier $1.45 billion 2.98 $113.42 million $1.61 19.85
Evolent Health $434.95 million 3.50 -$60.66 million ($0.70) -28.07

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

Summary

Premier beats Evolent Health on 8 of the 14 factors compared between the two stocks.

About Premier

Premier, Inc., together with its subsidiaries, operates as a healthcare improvement company in the United States. The company operates through two segments, Supply Chain Services and Performance Services. The Supply Chain Services segment offers its members with access to a range of products and services, including medical and surgical products, pharmaceuticals, laboratory supplies, capital equipment, information technology, facilities and construction, and food and nutritional products, as well as purchased services, such as clinical engineering and document shredding services and software-as-a-service informatics products. This segment also engages in the Integrated Pharmacy business, which provides traditional pharmacy dispensing and integrated pharmacy services; direct sourcing business; and provision of ASCEND Collaborative service for members to receive group purchasing programs, tiers, and prices, as well as managed services. The Performance Services segment offers PremierConnect for members to address existing cost and quality imperatives, help them manage a value-based care reimbursement model and support their regulatory reporting framework; and performance improvement collaborative, advisory, and government and insurance management services. This segment provides various PremierConnect domains comprising PremierConnect Quality & Regulatory domain for identifying and targeting quality improvement areas; PremierConnect Clinical Surveillance & Safety domain to enhance patient safety; PremierConnect Supply Chain & ERP domain for lowering supply chain costs; PremierConnect Operations domain, which optimizes labor management with integrated financial reporting and budgeting; and PremierConnect Enterprise Analytics, which integrates member's custom data into a hosted and integrated data warehouse and analytics platform. The company is headquartered in Charlotte, North Carolina.

About Evolent Health

Evolent Health, Inc., through its subsidiary, Evolent Health LLC, provides health care delivery and payment solutions in the United States. The company operates as a managed services firm that supports health systems and physician organizations in migration toward value-based care and population health management. Its services include providing customers with a population management platform, integrated data and analytics capabilities, pharmacy benefit management services, and comprehensive health plan administration services. Evolent Health, Inc. was founded in 2011 and is headquartered in Arlington, Virginia.

Receive News & Ratings for Premier Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Premier and related companies with MarketBeat.com's FREE daily email newsletter.




Leave a Reply