Analyzing Evolent Health (NYSE:EVH) & Astera Labs (NASDAQ:ALAB)

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

Volatility & Risk

Evolent Health has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Astera Labs has a beta of 3.95, suggesting that its stock price is 295% more volatile than the S&P 500.

Profitability

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

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evolent Health	$1.88 billion	0.27	-$534.51 million	($4.76)	-0.94
Astera Labs	$852.53 million	68.62	$219.13 million	$1.48	230.61

Astera Labs has lower revenue, but higher earnings 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.

Institutional and Insider Ownership

60.5% of Astera Labs shares are held by institutional investors. 1.5% of Evolent Health shares are held by company insiders. Comparatively, 10.4% of Astera Labs shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Evolent Health and Astera Labs, as provided by MarketBeat.

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

Evolent Health currently has a consensus price target of $6.00, suggesting a potential upside of 33.48%. Astera Labs has a consensus price target of $233.75, suggesting a potential downside of 31.51%. Given Evolent Health’s stronger consensus rating and higher probable upside, analysts clearly believe Evolent Health is more favorable than Astera Labs.

Summary

Astera Labs beats Evolent Health on 10 of the 14 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 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.