Veritec (OTCMKTS:VRTC – Get Rating) and Evolent Health (NYSE:EVH – Get Rating) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, dividends, profitability, earnings, risk, analyst recommendations and institutional ownership.
Profitability
This table compares Veritec and Evolent Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Veritec | -201.65% | N/A | -460.19% |
| Evolent Health | -1.42% | 7.50% | 3.55% |
Volatility & Risk
Veritec has a beta of -22.63, meaning that its stock price is 2,363% less volatile than the S&P 500. Comparatively, Evolent Health has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Veritec | 0 | 0 | 0 | 0 | N/A |
| Evolent Health | 0 | 1 | 8 | 0 | 2.89 |
Evolent Health has a consensus price target of $47.70, suggesting a potential upside of 51.43%. Given Evolent Health’s higher probable upside, analysts plainly believe Evolent Health is more favorable than Veritec.
Institutional and Insider Ownership
93.3% of Evolent Health shares are owned by institutional investors. 51.8% of Veritec shares are owned by insiders. Comparatively, 4.2% of Evolent Health shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Veritec and Evolent Health’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Veritec | $350,000.00 | 2.06 | -$510,000.00 | ($0.03) | -0.60 |
| Evolent Health | $1.35 billion | 2.59 | -$19.16 million | ($0.20) | -157.50 |
Veritec has higher earnings, but lower revenue than Evolent Health. Evolent Health is trading at a lower price-to-earnings ratio than Veritec, indicating that it is currently the more affordable of the two stocks.
Summary
Evolent Health beats Veritec on 9 of the 13 factors compared between the two stocks.
About Veritec
Veritec, Inc. engages in the development, sales, and licensing of products. It also provides services related to mobile banking solutions. The firm also operates in back-end cardholder transaction processing services for visa-branded card programs on behalf of its sponsoring bank. The company was founded on September 8, 1982 and is headquartered in Golden Valley, MN.
About Evolent Health
Evolent Health, Inc. engages in the provision of healthcare delivery and payment services. It deals with population health management, health plan and third party administration, network performance and pharmacy benefit management, risk adjustment, analytics and performance improvement, and technology and electronic medical record integration. The firm operates through Services and True Health segments. The Services segment includes clinical and administrative solutions such as total cost of care management and specialty care management and comprehensive health plan administrative services. The True Health segment offers a physician-led health plan for employer-sponsored health coverage. The company was founded by Frank J. Williams, Seth B. Blackley, and Thomas Peterson III in August 2011 and is headquartered in Arlington, VA.
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