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

Valuation & Earnings

This table compares Evolent Health and Castlight Health, inc.’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Evolent Health $361.53 million 3.85 -$51.15 million ($1.21) -15.41
Castlight Health, inc. $115.24 million 4.80 -$48.77 million ($0.45) -9.33

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

Institutional and Insider Ownership

82.5% of Evolent Health shares are owned by institutional investors. Comparatively, 41.3% of Castlight Health, inc. shares are owned by institutional investors. 8.8% of Evolent Health shares are owned by insiders. Comparatively, 24.4% of Castlight Health, inc. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Evolent Health -17.57% -6.44% -5.13%
Castlight Health, inc. -42.54% -36.30% -24.42%

Analyst Ratings

This is a breakdown of current ratings and target prices for Evolent Health and Castlight Health, inc., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Evolent Health 0 0 12 1 3.08
Castlight Health, inc. 1 4 2 0 2.14

Evolent Health presently has a consensus price target of $28.73, suggesting a potential upside of 54.03%. Castlight Health, inc. has a consensus price target of $4.63, suggesting a potential upside of 10.12%. Given Evolent Health’s stronger consensus rating and higher possible upside, equities analysts plainly believe Evolent Health is more favorable than Castlight Health, inc..

Volatility & Risk

Evolent Health has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500. Comparatively, Castlight Health, inc. has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500.

Summary

Evolent Health beats Castlight Health, inc. on 9 of the 14 factors compared between the two stocks.

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.

Castlight Health, inc. Company Profile

Castlight Health, Inc. offers a health benefits platform that engages employees to make healthcare decisions, and enables employers to communicate and measure their benefit programs. The Company operates through cloud-based products segment. Its technology offering aggregates data and applies analytics to make healthcare data transparent. Its products deliver employee engagement and enable employers to integrate benefit programs into a single platform available to employees and their families. Its health benefits platform engages external data and its substantial user base to provide a single, end-to-end solution that engages employees through personalized and relevant communications. Its offering provides employers the opportunity to communicate, measure, and get value out of their benefits and programs on a real-time basis. It offers cross-sell products, such as Castlight Action, Castlight Pharmacy, Castlight Dental, Castlight Elevate, Castlight Protect and Castlight Rewards.

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