DarioHealth (NASDAQ:DRIO) versus Evolent Health (NYSE:EVH) Head-To-Head Contrast

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DarioHealth	-169.87%	-54.81%	-33.36%
Evolent Health	-24.08%	-4.27%	-1.06%

Valuation and Earnings

This table compares DarioHealth and Evolent Health”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DarioHealth	$22.36 million	3.20	-$41.71 million	($6.13)	-1.19
Evolent Health	$1.88 billion	0.25	-$534.51 million	($4.57)	-0.93

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

Analyst Recommendations

This is a summary of current ratings and price targets for DarioHealth and Evolent Health, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DarioHealth	1	1	2	0	2.25
Evolent Health	1	4	11	0	2.62

DarioHealth currently has a consensus price target of $10.00, suggesting a potential upside of 36.99%. Evolent Health has a consensus price target of $5.96, suggesting a potential upside of 40.97%. Given Evolent Health’s stronger consensus rating and higher probable upside, analysts clearly believe Evolent Health is more favorable than DarioHealth.

Institutional & Insider Ownership

33.4% of DarioHealth shares are owned by institutional investors. 3.5% of DarioHealth shares are owned by insiders. Comparatively, 1.5% of Evolent Health shares are owned by 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.

Volatility and Risk

DarioHealth has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Evolent Health has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.

Summary

Evolent Health beats DarioHealth on 9 of the 14 factors compared between the two stocks.

About DarioHealth

DarioHealth Corp. operates as a digital health company in the United States, Canada, the European Union, Australia, and New Zealand. Its digital therapeutics platform and suite of solutions deliver personalized and dynamic interventions driven by data analytics and one-on-one coaching for diabetes, hypertension, weight management, musculoskeletal pain, and behavioral health. The company offers Dario Evolve, a metabolic solution to address metabolic health needs, such as diabetes, pre-diabetes, hypertension, and weight management; Dario Move, which address most common musculoskeletal conditions; Dario Elevate, a behavioral health solution that optimizes access to evidence-based care; and Dario One, a full suite of chronic condition management solution; and Dario blood glucose monitoring systems. It also provides native devices, such as glucose meter, blood pressure cuff, digital scale, and biofeedback sensor device, as well as live coaching services. The company was formerly known as LabStyle Innovations Corp. and changed its name to DarioHealth Corp. in July 2016. DarioHealth Corp. was incorporated in 2011 and is based in New York, New York.

About Evolent Health

Evolent Health, Inc., through its subsidiary, Evolent Health LLC, offers specialty care management services in oncology, cardiology, and musculoskeletal markets in the United States. The company provides platform for health plan administration and value-based business infrastructure. It offers administrative services, such as health plan services, pharmacy benefits management, risk management, analytics and reporting, and leadership and management; and Identifi, a proprietary technology system that aggregates and analyzes data, manages care workflows, and engages patients. In addition, the company provides holistic total cost of care management. Evolent Health, Inc. was founded in 2011 and is headquartered in Arlington, Virginia.