Analyzing R1 RCM (RCM) and Evolent Health (EVH)

R1 RCM (NASDAQ: RCM) and Evolent Health (NYSE:EVH) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for R1 RCM and Evolent Health, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
R1 RCM 0 1 2 0 2.67
Evolent Health 0 0 12 0 3.00

R1 RCM currently has a consensus target price of $9.33, indicating a potential upside of 6.91%. Evolent Health has a consensus target price of $25.33, indicating a potential upside of 28.92%. Given Evolent Health’s stronger consensus rating and higher possible upside, analysts plainly believe Evolent Health is more favorable than R1 RCM.

Insider and Institutional Ownership

46.1% of R1 RCM shares are owned by institutional investors. 62.0% of R1 RCM shares are owned by insiders. Comparatively, 8.8% of Evolent Health shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

R1 RCM has a beta of -0.76, meaning that its stock price is 176% less volatile than the S&P 500. Comparatively, Evolent Health has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.

Profitability

This table compares R1 RCM and Evolent Health’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
R1 RCM -14.47% -45.77% -7.12%
Evolent Health -12.11% -2.16% -1.73%

Earnings and Valuation

This table compares R1 RCM and Evolent Health’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
R1 RCM $449.80 million 2.13 -$58.80 million ($0.44) -19.84
Evolent Health $434.95 million 3.50 -$60.66 million ($0.70) -28.07

R1 RCM has higher revenue and earnings than Evolent Health. Evolent Health is trading at a lower price-to-earnings ratio than R1 RCM, indicating that it is currently the more affordable of the two stocks.

Summary

Evolent Health beats R1 RCM on 8 of the 14 factors compared between the two stocks.

About R1 RCM

R1 RCM Inc. provides revenue cycle management (RCM) for healthcare providers in the United States. It offers end-to-end RCM services to manage their revenue cycle operations, which encompass patient registration, insurance and benefit verification, medical treatment documentation and coding, and bill preparation and collection from patients and payers. The company also provides modular services comprising physician advisory services, which assists hospitals in complying with payer requirements regarding whether to classify a hospital visit as an in-patient or an out-patient observation case for billing purposes; and revenue capture services, including charge capture, charge description master maintenance, and pricing services. It serves single or multi-hospital healthcare systems, and their respective affiliated ambulatory clinics and physician practice groups. The company was formerly known as Accretive Health, Inc. and changed its name to R1 RCM Inc. in January 2017. R1 RCM Inc. was founded in 2003 and is headquartered in Chicago, Illinois.

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 R1 RCM Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for R1 RCM and related companies with MarketBeat.com's FREE daily email newsletter.




Leave a Reply