Evolent Health (NYSE:EVH) and Smartsheet (NYSE:SMAR) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, risk, profitability, valuation, analyst recommendations and earnings.
Valuation & Earnings
This table compares Evolent Health and Smartsheet's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Evolent Health | $846.38 million | 1.92 | $-301,970,000.00 | ($0.91) | -20.76 |
| Smartsheet | $270.88 million | 23.89 | $-95,940,000.00 | ($0.82) | -63.61 |
Smartsheet has lower revenue, but higher earnings than Evolent Health. Smartsheet is trading at a lower price-to-earnings ratio than Evolent Health, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Evolent Health and Smartsheet's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Evolent Health | -52.35% | -4.40% | -2.41% |
| Smartsheet | -32.32% | -21.98% | -14.14% |
Institutional and Insider Ownership
93.2% of Evolent Health shares are held by institutional investors. Comparatively, 94.6% of Smartsheet shares are held by institutional investors. 5.0% of Evolent Health shares are held by company insiders. Comparatively, 10.2% of Smartsheet shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Volatility & Risk
Evolent Health has a beta of 2.4, suggesting that its share price is 140% more volatile than the S&P 500. Comparatively, Smartsheet has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations for Evolent Health and Smartsheet, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Evolent Health | 0 | 3 | 7 | 0 | 2.70 |
| Smartsheet | 0 | 5 | 9 | 0 | 2.64 |
Evolent Health currently has a consensus target price of $18.20, indicating a potential downside of 3.65%. Smartsheet has a consensus target price of $74.6250, indicating a potential upside of 43.07%. Given Smartsheet's higher possible upside, analysts clearly believe Smartsheet is more favorable than Evolent Health.
Summary
Smartsheet beats Evolent Health on 8 of the 14 factors compared between the two stocks.
