Evolent Health, Inc (EVH) vs Phreesia, Inc. (PHR)

Evolent Health, Inc and Phreesia, Inc. are both Health Information Services companies. Phreesia, Inc. is the larger, with a market value of $620.7M against $398.0M — 1.6× the size. Evolent Health, Inc has negative trailing earnings, so its P/E is not meaningful; Phreesia, Inc. trades at 59.7×. Phreesia, Inc. grew revenue faster over the last twelve months: 12.9% against −4.50%. Phreesia, Inc. has the higher net margin (2.06% vs −24.4%) and the higher return on invested capital (1.74% vs −22.1%). Across the 20 metrics below, Phreesia, Inc. leads on 16 and Evolent Health, Inc on 4.

Valuation

Metric EVH PHR Health Information Services median
P/E n/m 59.71 39.52
P/S 0.19 1.24 2.65
P/B 1.06 1.69 2.32
Price to free cash flow 16.69 9.30 16.77
EV/EBITDA 12.35 13.19 12.35
EV/Sales 0.59 1.39 3.06
Earnings yield (126.59%) 1.67% (1.68%)
Free cash flow yield 5.99% 10.75% 0.54%

Profitability

Metric EVH PHR Health Information Services median
Gross margin 17.25% 67.52% 63.38%
Operating margin (20.39%) 2.47% (8.35%)
Net margin (24.37%) 2.06% (14.70%)
Free cash flow margin 1.16% 13.30% 0.58%
Return on equity (79.90%) 3.12% (6.82%)
Return on assets (23.05%) 1.98% (6.02%)
Return on invested capital (22.06%) 1.74% 0.00%

Growth

Metric EVH PHR Health Information Services median
Revenue growth (TTM) (4.50%) 12.93% 8.62%
EPS growth (last fiscal year) (525.93%) 103.92% —
Revenue growth, 5-year CAGR 15.20% 26.45% 12.36%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric EVH PHR Health Information Services median
Debt to equity 2.52 0.41 0.01
Current ratio 1.24 1.76 2.37
Net debt to EBITDA 6.70 3.58 0.50

Dividend

Metric EVH PHR Health Information Services median
Dividend yield 0.85% — 0.85%
Payout ratio 0.00 0.00 0.00

Size

Metric EVH PHR Health Information Services median
Market cap 397.97m 620.71m 352.86m

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