Head-To-Head Analysis: Surgery Partners (NASDAQ:SGRY) vs. Alignment Healthcare (NASDAQ:ALHC)

Alignment Healthcare (NASDAQ:ALHC) and Surgery Partners (NASDAQ:SGRY) are both healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.

Profitability

This table compares Alignment Healthcare and Surgery Partners’ 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%
Surgery Partners	-2.59%	0.98%	0.38%

Analyst Recommendations

This is a summary of recent recommendations for Alignment Healthcare and Surgery Partners, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alignment Healthcare	1	6	6	0	2.38
Surgery Partners	1	9	2	0	2.08

Alignment Healthcare presently has a consensus price target of $14.00, indicating a potential upside of 82.05%. Surgery Partners has a consensus price target of $20.70, indicating a potential downside of 22.36%. Given Alignment Healthcare’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Alignment Healthcare is more favorable than Surgery Partners.

Institutional and Insider Ownership

86.2% of Alignment Healthcare shares are held by institutional investors. 5.2% of Alignment Healthcare shares are held by insiders. Comparatively, 2.0% of Surgery Partners shares are held by 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.

Volatility & Risk

Alignment Healthcare has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Surgery Partners has a beta of 1.85, suggesting that its share price is 85% more volatile than the S&P 500.

Valuation and Earnings

This table compares Alignment Healthcare and Surgery Partners”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alignment Healthcare	$4.94 billion	0.33	-$720,000.00	$0.13	59.15
Surgery Partners	$3.31 billion	1.05	-$77.90 million	($0.68)	-39.21

Alignment Healthcare has higher revenue and earnings than Surgery Partners. Surgery Partners is trading at a lower price-to-earnings ratio than Alignment Healthcare, indicating that it is currently the more affordable of the two stocks.

Summary

Alignment Healthcare beats Surgery Partners on 11 of the 14 factors compared between the two stocks.

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.

About Surgery Partners

Surgery Partners, Inc. is a U.S. healthcare services company that owns and operates ambulatory surgery centers and surgical hospitals. Its facilities provide outpatient and inpatient surgical care across a range of specialties. The company’s services include surgical procedures and related care delivered in partnership with physicians and healthcare professionals. Its network serves patients in multiple states across the United States. Founded in 2004, Surgery Partners has expanded its network through acquisitions and partnerships with physicians and health systems.