Evolent Health, Inc (EVH) vs HealthStream, Inc. (HSTM)

Evolent Health, Inc and HealthStream, Inc. are both Health Information Services companies. HealthStream, Inc. is the larger, with a market value of $905.6M against $513.3M — 1.8× the size. Evolent Health, Inc has negative trailing earnings, so its P/E is not meaningful; HealthStream, Inc. trades at 42.0×. Evolent Health, Inc grew revenue faster over the last twelve months: 14.1% against 9.83%. HealthStream, Inc. has the higher net margin (6.25% vs −21.7%) and the higher return on invested capital (5.41% vs −22.9%). Across the 21 metrics below, HealthStream, Inc. leads on 16 and Evolent Health, Inc on 5.

Valuation

Metric EVH HSTM Health Information Services median
P/E n/m 42.03 42.03
P/S 0.22 2.65 1.80
P/B 1.40 2.17 1.87
Price to free cash flow 14.28 12.61 16.74
EV/EBITDA 13.40 9.35 13.40
EV/Sales 0.57 2.39 2.63
Earnings yield (98.06%) 2.38% (2.73%)
Free cash flow yield 7.00% 7.93% 0.00%

Profitability

Metric EVH HSTM Health Information Services median
Gross margin 14.95% 64.74% 59.61%
Operating margin (18.55%) 7.57% (10.54%)
Net margin (21.67%) 6.25% (16.14%)
Free cash flow margin 1.56% 21.04% 0.00%
Return on equity (83.57%) 5.45% (3.15%)
Return on assets (23.00%) 3.84% (5.62%)
Return on invested capital (22.87%) 5.41% 0.00%

Growth

Metric EVH HSTM Health Information Services median
Revenue growth (TTM) 14.06% 9.83% 6.48%
EPS growth (last fiscal year) (525.93%) (7.58%) 63.46%
Revenue growth, 5-year CAGR 15.20% 4.43% 10.98%
Net income growth, 5-year CAGR 0.00% 5.41% 0.00%

Health

Metric EVH HSTM Health Information Services median
Debt to equity 2.60 0.00 0.00
Current ratio 1.26 1.48 2.15
Net debt to EBITDA 6.70 (0.75) 0.71

Dividend

Metric EVH HSTM Health Information Services median
Dividend yield — 0.46% —
Payout ratio — 0.19 —

Size

Metric EVH HSTM Health Information Services median
Market cap 513.28m 905.63m 309.94m

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