Allscripts Healthcare Solutions (NASDAQ: MDRX) and Evolent Health (NYSE:EVH) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, institutional ownership, profitability and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Allscripts Healthcare Solutions -11.54% 5.97% 1.96%
Evolent Health -17.57% -6.44% -5.13%

Institutional & Insider Ownership

82.5% of Evolent Health shares are owned by institutional investors. 0.8% of Allscripts Healthcare Solutions shares are owned by insiders. Comparatively, 8.8% of Evolent Health shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Allscripts Healthcare Solutions has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, Evolent Health has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500.

Valuation & Earnings

This table compares Allscripts Healthcare Solutions and Evolent Health’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Allscripts Healthcare Solutions $1.66 billion 1.45 $160.09 million ($1.06) -12.59
Evolent Health $361.53 million 3.25 -$51.15 million ($1.21) -14.75

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Allscripts Healthcare Solutions and Evolent Health, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allscripts Healthcare Solutions 1 7 9 0 2.47
Evolent Health 0 0 11 1 3.08

Allscripts Healthcare Solutions presently has a consensus price target of $14.47, suggesting a potential upside of 8.36%. Evolent Health has a consensus price target of $30.33, suggesting a potential upside of 69.93%. Given Evolent Health’s stronger consensus rating and higher possible upside, analysts plainly believe Evolent Health is more favorable than Allscripts Healthcare Solutions.

Allscripts Healthcare Solutions Company Profile

Allscripts Healthcare Solutions, Inc. (Allscripts) delivers information technology (IT) solutions and services to help healthcare organizations. The Company operates through three segments: Clinical and Financial Solutions, Population Health, and Netsmart. The Clinical and Financial Solutions segment includes the sale of integrated clinical software applications and financial and information solutions. The Population Health segment includes the sale of health management and coordinated care solutions, which focus on hospitals, health systems, other care facilities and accountable care organizations (ACOs). The Netsmart segment provides software and technology solutions to the health and human services industry, which includes behavioral health, addiction treatment, intellectual and developmental disability services, child and family services and public health segments, as well as to post-acute home care organizations.

Evolent Health Company Profile

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.

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