Evolent Health (NYSE:EVH) and Rainmaker Systems (OTCMKTS:VCTL) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.
Institutional and Insider Ownership
0.4% of Rainmaker Systems shares are held by institutional investors. 4.8% of Evolent Health shares are held by company insiders. Comparatively, 7.6% of Rainmaker Systems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares Evolent Health and Rainmaker Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Evolent Health and Rainmaker Systems’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Evolent Health||$434.95 million||4.13||-$60.66 million||($0.70)||-32.60|
Rainmaker Systems has lower revenue, but higher earnings than Evolent Health.
This is a summary of current ratings and price targets for Evolent Health and Rainmaker Systems, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Evolent Health presently has a consensus target price of $30.45, suggesting a potential upside of 33.46%. Given Evolent Health’s higher probable upside, analysts clearly believe Evolent Health is more favorable than Rainmaker Systems.
Risk & Volatility
Evolent Health has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500. Comparatively, Rainmaker Systems has a beta of -1.58, indicating that its stock price is 258% less volatile than the S&P 500.
Rainmaker Systems beats Evolent Health on 5 of the 9 factors compared between the two stocks.
About Evolent Health
Evolent Health, Inc., through its subsidiary, Evolent Health LLC, provides health care delivery and payment solutions in the United States. The company operates as a managed services firm that supports health systems and physician organizations in migration toward value-based care and population health management. Its services include providing customers with a population management platform, integrated data and analytics capabilities, pharmacy benefit management services, and comprehensive health plan administration services. Evolent Health, Inc. was founded in 2011 and is headquartered in Arlington, Virginia.
About Rainmaker Systems
Rainmaker Systems, Inc. provides B2B small and medium-sized business sales and service solutions. It develops Rainmaker Revenue Delivery Platform, an integrated solution that combines specialized sales and marketing services coupled with its proprietary, renewals software, and business analytics. The company's services include marketing strategy development, personalized renewals or subscription e-commerce and microsite creation and hosting, inbound and outbound e-mail, direct mail, chat, and global call center services. It also offers ViewCentral SaaS platform that provides an end-to-end solution for the management and delivery of training and certification programs for corporations. The company markets its products and services through a direct sales force to enterprises in hardware, software, software as a service, and telecommunications industries. Rainmaker Systems, Inc. was founded in 1991 and is headquartered in Campbell, California.
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