Critical Review: Alignment Healthcare (ALHC) and Its Peers

Alignment Healthcare (NASDAQ:ALHC) is one of 233 publicly-traded companies in the “Healthcare Providers & Services” industry, but how does it contrast to its rivals? We will compare Alignment Healthcare to related companies based on the strength of its institutional ownership, earnings, dividends, risk, valuation, profitability and analyst recommendations.

Earnings & Valuation

This table compares Alignment Healthcare and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Alignment Healthcare	$3.95 billion	-$720,000.00	55.96
Alignment Healthcare Competitors	$21.12 billion	$301.67 million	-1.66

Alignment Healthcare’s rivals have higher revenue and earnings than Alignment Healthcare. Alignment Healthcare is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Alignment Healthcare and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alignment Healthcare	0.59%	12.46%	2.36%
Alignment Healthcare Competitors	-8.06%	-136.95%	-1.64%

Insider & Institutional Ownership

86.2% of Alignment Healthcare shares are owned by institutional investors. Comparatively, 56.7% of shares of all “Healthcare Providers & Services” companies are owned by institutional investors. 5.2% of Alignment Healthcare shares are owned by company insiders. Comparatively, 15.0% of shares of all “Healthcare Providers & Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Alignment Healthcare and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alignment Healthcare	1	6	6	0	2.38
Alignment Healthcare Competitors	1873	7748	13378	829	2.55

Alignment Healthcare currently has a consensus target price of $14.00, suggesting a potential upside of 92.44%. As a group, “Healthcare Providers & Services” companies have a potential upside of 14.39%. Given Alignment Healthcare’s higher possible upside, research analysts clearly believe Alignment Healthcare is more favorable than its rivals.

Volatility & Risk

Alignment Healthcare has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, Alignment Healthcare’s rivals have a beta of 0.98, meaning that their average stock price is 2% less volatile than the S&P 500.

Summary

Alignment Healthcare beats its rivals on 7 of the 13 factors compared.

About Alignment Healthcare

Alignment Healthcare, Inc. is a technology-enabled healthcare company focused primarily on serving older adults through Medicare Advantage plans. Its health plans, offered under the Alignment Health Plan name, combine insurance coverage with care coordination and support intended to address members’ medical and everyday health needs. The company uses a care model that includes personalized care teams, member support and technology to help coordinate services across providers. Its Medicare Advantage offerings include plan options such as HMO and PPO products, with availability and benefits varying by location.