Contrasting Twilio (NYSE:TWLO) and Evolent Health (NYSE:EVH)

Twilio (NYSE:TWLO) and Evolent Health (NYSE:EVH) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.

Insider & Institutional Ownership

84.3% of Twilio shares are owned by institutional investors. 0.2% of Twilio 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, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Twilio and Evolent Health”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Twilio	$5.07 billion	5.54	$33.83 million	$0.64	288.77
Evolent Health	$1.88 billion	0.23	-$534.51 million	($4.76)	-0.82

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Twilio	1.96%	4.64%	3.76%
Evolent Health	-26.29%	0.36%	0.10%

Risk and Volatility

Twilio has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, Evolent Health has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Twilio and Evolent Health, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Twilio	1	3	17	2	2.87
Evolent Health	1	3	13	0	2.71

Twilio presently has a consensus price target of $195.40, suggesting a potential upside of 5.73%. Evolent Health has a consensus price target of $6.00, suggesting a potential upside of 54.04%. Given Evolent Health’s higher probable upside, analysts clearly believe Evolent Health is more favorable than Twilio.

Summary

Twilio beats Evolent Health on 13 of the 15 factors compared between the two stocks.

About Twilio

Twilio Inc., together with its subsidiaries, provides customer engagement platform solutions in the United States and internationally. It operates through two segments, Twilio Communications and Twilio Segment. The company provides various application programming interfaces and software solutions for communications between customers and end users, including messaging, voice, email, flex, marketing campaigns, and user identity and authentication. It also offers software products to build direct, personalized relationships with their end users, such as segment, a platform that provides tools for first-party data by unifying real-time information collected; and engage, an automation platform for the delivery of omnichannel campaigns. Twilio Inc. was incorporated in 2008 and is headquartered in San Francisco, 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.