Evolent Health (EVH) and Complete Genomics (GNOM) Critical Review

Evolent Health (NYSE: EVH) and Complete Genomics (NASDAQ:GNOM) are both small-cap healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.

Earnings and Valuation

This table compares Evolent Health and Complete Genomics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Evolent Health $254.19 million 4.24 -$159.74 million ($1.14) -12.24
Complete Genomics N/A N/A N/A ($2.35) -1.34

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

Insider and Institutional Ownership

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

Analyst Recommendations

This is a breakdown of current recommendations for Evolent Health and Complete Genomics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Evolent Health 0 0 14 0 3.00
Complete Genomics 0 0 0 0 N/A

Evolent Health currently has a consensus price target of $28.00, suggesting a potential upside of 100.72%. Given Evolent Health’s higher possible upside, research analysts clearly believe Evolent Health is more favorable than Complete Genomics.

Profitability

This table compares Evolent Health and Complete Genomics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Evolent Health -15.86% -5.05% -3.96%
Complete Genomics N/A N/A N/A

Summary

Evolent Health beats Complete Genomics on 6 of the 10 factors compared between the two stocks.

About Evolent Health

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.

About Complete Genomics

Complete Genomics, Inc. is a life sciences company that has developed and commercialized a deoxyribonucleic acid (DNA) sequencing platform. Its complete genomics analysis platform (CGA) Platform, combines its human genome sequencing technology with its advanced informatics and data management software and its end-to-end, outsourced service model to provide its customers with data that is ready to be used for genome-based research. Its genome sequencing center combines a high-throughput sample preparation facility, a collection of its high-throughput sequencing instruments and a large- scale data center. Its customers include some of the global academic and government research centers and biopharmaceutical companies. Effective March 18, 2013, BGI-Shenzhen announced that through its wholly-owned subsidiary, Beta Acquisition Corporation, it has completed the acquisition of the Company.

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