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The best way to evaluate web design companies is by looking at their websites and determining if the style and layout on their website is suitable for your needs. If a web design company cannot put together their own website very well, then that speaks volumes about their ability to produce quality content for customers.
The alternate method that applies both to companies and individuals is to ask to see a portfolio. This should include examples of work both in paper form as well as websites that are on the Internet, not to mention previous websites that have been built for clients that they can direct you to. Contacting these previous clients is another good method of evaluating a company, because they can tell you about their experience with the web design company.