Head to Head Survey: Waystar (NASDAQ:WAY) vs. Evolent Health (NYSE:EVH)

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evolent Health	1	4	11	0	2.62
Waystar	0	4	18	2	2.92

Evolent Health currently has a consensus target price of $5.96, suggesting a potential upside of 71.68%. Waystar has a consensus target price of $34.67, suggesting a potential upside of 39.73%. Given Evolent Health’s higher probable upside, equities research analysts clearly believe Evolent Health is more favorable than Waystar.

Risk and Volatility

Evolent Health has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, Waystar has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500.

Earnings & Valuation

This table compares Evolent Health and Waystar”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evolent Health	$1.88 billion	0.21	-$534.51 million	($4.57)	-0.76
Waystar	$1.21 billion	3.95	$112.09 million	$0.70	35.44

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Evolent Health	-24.08%	-4.27%	-1.06%
Waystar	11.18%	7.03%	4.75%

Summary

Waystar beats Evolent Health on 10 of the 13 factors compared between the two stocks.

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.

About Waystar

Waystar Holding Corp. is a software company which provide healthcare payments. Waystar Holding Corp. is based in LEHI, Utah.