WallStSmart

Evolent Health Inc (EVH)vsHealthEquity Inc (HQY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Evolent Health Inc generates 54% more annual revenue ($2.10B vs $1.36B). HQY leads profitability with a 17.4% profit margin vs -24.1%. HQY appears more attractively valued with a PEG of 1.40. HQY earns a higher WallStSmart Score of 62/100 (C+).

EVH

Buy

52

out of 100

Grade: C-

Growth: 7.3Profit: 2.0Value: 4.7Quality: 3.5
Piotroski: 4/9Altman Z: -0.57

HQY

Buy

62

out of 100

Grade: C+

Growth: 6.7Profit: 7.5Value: 6.7Quality: 7.5
Piotroski: 7/9Altman Z: 1.86
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for EVH.

HQYUndervalued (+58.5%)

Margin of Safety

+58.5%

Fair Value

$185.20

Current Price

$96.26

$88.94 discount

UndervaluedFair: $185.20Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EVH2 strengths · Avg: 10.0/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
46.9%10/10

Revenue surging 46.9% year-over-year

HQY1 strengths · Avg: 8.0/10
Operating MarginProfitability
28.4%8/10

Strong operational efficiency at 28.4%

Areas to Watch

EVH4 concerns · Avg: 3.3/10
PEG RatioValuation
1.934/10

Expensive relative to growth rate

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$508.77M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-131.8%2/10

ROE of -131.8% — below average capital efficiency

HQY2 concerns · Avg: 4.0/10
P/E RatioValuation
33.7x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.864/10

Grey zone — moderate risk

Comparative Analysis Report

WallStSmart Research

Bull Case : EVH

The strongest argument for EVH centers on Price/Book, Revenue Growth. Revenue growth of 46.9% demonstrates continued momentum.

Bull Case : HQY

The strongest argument for HQY centers on Operating Margin. Profitability is solid with margins at 17.4% and operating margin at 28.4%. PEG of 1.40 suggests the stock is reasonably priced for its growth.

Bear Case : EVH

The primary concerns for EVH are PEG Ratio, EPS Growth, Market Cap. Debt-to-equity of 2.53 is elevated, increasing financial risk.

Bear Case : HQY

The primary concerns for HQY are P/E Ratio, Altman Z-Score.

Key Dynamics to Monitor

EVH profiles as a hypergrowth stock while HQY is a mature play — different risk/reward profiles.

EVH carries more volatility with a beta of 0.78 — expect wider price swings.

EVH is growing revenue faster at 46.9% — sustainability is the question.

HQY generates stronger free cash flow (135M), providing more financial flexibility.

Bottom Line

HQY scores higher overall (62/100 vs 52/100), backed by strong 17.4% margins. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Evolent Health Inc

HEALTHCARE · HEALTH INFORMATION SERVICES · USA

Evolent Health, Inc., through its subsidiary, Evolent Health LLC, provides healthcare delivery and payment solutions in the United States. The company is headquartered in Arlington, Virginia.

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HealthEquity Inc

HEALTHCARE · HEALTH INFORMATION SERVICES · USA

HealthEquity, Inc. provides technology-enabled service platforms to consumers and employers in the United States. The company is headquartered in Draper, Utah.

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