Evolent Health (NYSE:EVH) vs. Astera Labs (NASDAQ:ALAB) Critical Comparison

Astera Labs (NASDAQ:ALAB) and Evolent Health (NYSE:EVH) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.

Volatility & Risk

Astera Labs has a beta of 3.94, suggesting that its share price is 294% more volatile than the S&P 500. Comparatively, Evolent Health has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Astera Labs	26.72%	18.49%	16.60%
Evolent Health	-26.29%	0.36%	0.10%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Astera Labs and Evolent Health, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Astera Labs	0	11	12	0	2.52
Evolent Health	1	3	13	0	2.71

Astera Labs currently has a consensus target price of $233.75, indicating a potential downside of 36.33%. Evolent Health has a consensus target price of $6.08, indicating a potential upside of 27.00%. Given Evolent Health’s stronger consensus rating and higher possible upside, analysts clearly believe Evolent Health is more favorable than Astera Labs.

Earnings & Valuation

This table compares Astera Labs and Evolent Health”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Astera Labs	$852.53 million	73.82	$219.13 million	$1.48	248.07
Evolent Health	$1.88 billion	0.29	-$534.51 million	($4.76)	-1.01

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

Insider and Institutional Ownership

60.5% of Astera Labs shares are owned by institutional investors. 10.4% of Astera Labs shares are owned by insiders. Comparatively, 1.5% of Evolent Health shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Astera Labs beats Evolent Health on 10 of the 14 factors compared between the two stocks.

About Astera Labs

Astera Labs, Inc. designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure. Its Intelligent Connectivity Platform is comprised of a portfolio of data, network, and memory connectivity products, which are built on a unifying software-defined architecture that enables customers to deploy and operate high performance cloud and AI infrastructure at scale. The company was incorporated in 2017 and is based in Santa Clara, California.

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.