WallStSmart

Evolent Health Inc (EVH)vsR1 RCM Inc (RCM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

R1 RCM Inc generates 30% more annual revenue ($2.46B vs $1.89B). RCM leads profitability with a -2.5% profit margin vs -26.3%. EVH appears more attractively valued with a PEG of 1.93. EVH earns a higher WallStSmart Score of 44/100 (D).

EVH

Hold

44

out of 100

Grade: D

Growth: 5.3Profit: 2.0Value: 4.7Quality: 3.5
Piotroski: 4/9Altman Z: -0.57

RCM

Hold

39

out of 100

Grade: F

Growth: 6.0Profit: 3.0Value: 5.7Quality: 6.0
Piotroski: 6/9Altman Z: 1.34
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for EVH.

RCMUndervalued (+26.9%)

Margin of Safety

+26.9%

Fair Value

$19.57

Current Price

$14.31

$5.26 discount

UndervaluedFair: $19.57Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EVH1 strengths · Avg: 10.0/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

RCM1 strengths · Avg: 8.0/10
Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Areas to Watch

EVH4 concerns · Avg: 3.8/10
PEG RatioValuation
1.934/10

Expensive relative to growth rate

Revenue GrowthGrowth
2.6%4/10

2.6% revenue growth

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$474.67M3/10

Smaller company, higher risk/reward

RCM4 concerns · Avg: 2.8/10
PEG RatioValuation
2.064/10

Expensive relative to growth rate

Operating MarginProfitability
3.8%3/10

Operating margin of 3.8%

Return on EquityProfitability
-2.2%2/10

ROE of -2.2% — below average capital efficiency

EPS GrowthGrowth
-99.3%2/10

Earnings declined 99.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : EVH

The strongest argument for EVH centers on Price/Book.

Bull Case : RCM

The strongest argument for RCM centers on Price/Book. Revenue growth of 14.7% demonstrates continued momentum.

Bear Case : EVH

The primary concerns for EVH are PEG Ratio, Revenue Growth, EPS Growth. Debt-to-equity of 2.49 is elevated, increasing financial risk.

Bear Case : RCM

The primary concerns for RCM are PEG Ratio, Operating Margin, Return on Equity.

Key Dynamics to Monitor

RCM carries more volatility with a beta of 0.84 — expect wider price swings.

RCM is growing revenue faster at 14.7% — sustainability is the question.

RCM generates stronger free cash flow (60M), providing more financial flexibility.

Monitor HEALTH INFORMATION SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

EVH scores higher overall (44/100 vs 39/100). RCM offers better value entry with a 26.9% margin of safety. Both earn "Hold" and "Hold" 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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R1 RCM Inc

HEALTHCARE · HEALTH INFORMATION SERVICES · USA

R1 RCM Inc (RCM) stands out as a leading provider of technology-driven revenue cycle management solutions, specifically designed to enhance the financial performance of healthcare organizations across the United States. Leveraging cutting-edge analytics and deep industry insights, R1 RCM optimizes billing processes and boosts operational efficiency for hospitals and outpatient facilities. By maximizing revenue capture while improving patient experiences, the company solidifies its position within a rapidly evolving healthcare landscape. With strategic initiatives aimed at expanding its service offerings and increasing market presence, R1 RCM is poised for sustained growth and a competitive edge in the increasingly complex revenue cycle management sector.

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