Financial Analysis: CareCloud (NASDAQ:CCLD) vs. Evolent Health (NYSE:EVH)

Evolent Health (NYSE:EVH) and CareCloud (NASDAQ:CCLD) are both healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.

Insider and Institutional Ownership

10.2% of CareCloud shares are held by institutional investors. 1.5% of Evolent Health shares are held by company insiders. Comparatively, 14.8% of CareCloud shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Evolent Health	N/A	N/A	N/A
CareCloud	N/A	N/A	N/A

Valuation & Earnings

This table compares Evolent Health and CareCloud”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evolent Health	N/A	N/A	N/A	($4.57)	-0.96
CareCloud	$128.64 million	0.57	$2.97 million	$0.07	24.86

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

Analyst Ratings

This is a breakdown of recent ratings for Evolent Health and CareCloud, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evolent Health	1	4	11	0	2.62
CareCloud	0	1	1	0	2.50

Evolent Health currently has a consensus price target of $5.96, indicating a potential upside of 36.02%. Given Evolent Health’s stronger consensus rating and higher probable upside, analysts plainly believe Evolent Health is more favorable than CareCloud.

Summary

CareCloud beats Evolent Health on 5 of the 8 factors compared between the two stocks.

About Evolent Health

Evolent Health, Inc., through its subsidiary, Evolent Health LLC, offers specialty care management services in oncology, cardiology, and musculoskeletal markets in the United States. The company provides platform for health plan administration and value-based business infrastructure. It offers administrative services, such as health plan services, pharmacy benefits management, risk management, analytics and reporting, and leadership and management; and Identifi, a proprietary technology system that aggregates and analyzes data, manages care workflows, and engages patients. In addition, the company provides holistic total cost of care management. Evolent Health, Inc. was founded in 2011 and is headquartered in Arlington, Virginia.

About CareCloud

CareCloud, Inc., a healthcare information technology (IT) company, provides a suite of cloud-based solutions and related business services to healthcare providers and hospitals primarily in the United States. It operates in two segments, Healthcare IT and Medical Practice Management. The company's portfolio of proprietary software and business services includes technology-enabled business solutions; cloud-based software; digital health services; healthcare IT professional services and staffing; and medical practice management services. Its technology-enabled business solutions comprise revenue cycle management services, healthcare claims clearinghouse, and medical coding and credentialing services; electronic health records, practice management software and related capabilities, patient experience management solutions, business intelligence and healthcare analytics platforms, and customized applications, interfaces, and various other technology solutions, as well as artificial intelligence, such as CareCloud cirrusAI, AI-powered clinical decision support, AI-powered virtual support assistant, AI-driven appeals, and CareCloud cirrusAI. In addition, the company provides chronic care management, remote patient monitoring, and telemedicine solutions; and professional and consulting services, workforce augmentation and on-demand staffing, and strategic advisory services. Further, it offers medical practice management services to medical practices comprising appropriate facilities, equipment, supplies, support services, nurses, and administrative support staff, as well as management, bill-paying, and financial advisory services. It serves physicians, nurses, nurse practitioners, physician assistants, and other clinicians that render bills for their services. The company was formerly known as MTBC, Inc. and changed its name to CareCloud, Inc. in March 2021. CareCloud, Inc. was founded in 1999 and is headquartered in Somerset, New Jersey.