Head-To-Head Contrast: SOPHiA GENETICS (NASDAQ:SOPH) and Evolent Health (NYSE:EVH)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Evolent Health	-21.67%	-6.07%	-1.23%
SOPHiA GENETICS	-89.18%	-128.69%	-44.73%

Institutional and Insider Ownership

31.6% of SOPHiA GENETICS shares are held by institutional investors. 1.5% of Evolent Health shares are held by company insiders. Comparatively, 4.9% of SOPHiA GENETICS shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Evolent Health and SOPHiA GENETICS”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	0.29	-$534.51 million	($4.54)	-1.08
SOPHiA GENETICS	$77.27 million	8.45	-$79.00 million	($1.09)	-7.14

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

Volatility and Risk

Evolent Health has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, SOPHiA GENETICS has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Evolent Health and SOPHiA GENETICS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evolent Health	1	3	11	0	2.67
SOPHiA GENETICS	1	1	3	0	2.40

Evolent Health currently has a consensus target price of $6.11, indicating a potential upside of 25.02%. SOPHiA GENETICS has a consensus target price of $10.00, indicating a potential upside of 28.45%. Given SOPHiA GENETICS’s higher possible upside, analysts plainly believe SOPHiA GENETICS is more favorable than Evolent Health.

About Evolent Health

Evolent Health, Inc. provides technology-enabled services to health plans and healthcare providers in the United States. The company helps clients manage care, coordinate services and support the delivery of healthcare, particularly for people with complex medical needs. Its offerings include specialty care management programs, clinical and administrative services, and technology that supports care decisions and operations. Evolent has focused on areas such as oncology, cardiology, musculoskeletal care and behavioral health.

About SOPHiA GENETICS

SOPHiA GENETICS is a healthcare technology company that develops data-analysis tools for genomics and other complex health data. Its cloud-based SOPHiA DDM platform uses artificial intelligence and analytics to help healthcare and research organizations interpret data and support clinical and scientific decision-making. The platform and related applications are used in areas including oncology, rare diseases and inherited conditions. The company serves hospitals, laboratories, biopharmaceutical companies and research organizations, with a presence across international markets.