Alignment Healthcare (ALHC) & Its Competitors Critical Review

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

Volatility and 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 competitors have a beta of 0.98, meaning that their average stock price is 2% less volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Alignment Healthcare	$4.94 billion	-$720,000.00	58.15
Alignment Healthcare Competitors	$19.09 billion	$288.54 million	14.42

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

Profitability

This table compares Alignment Healthcare and its competitors’ 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	-8.01%	-140.31%	-1.38%

Insider and 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 insiders. Comparatively, 15.0% of shares of all “Healthcare Providers & Services” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Alignment Healthcare and its competitors, 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	1858	7714	13302	815	2.55

Alignment Healthcare currently has a consensus target price of $14.00, indicating a potential upside of 85.19%. As a group, “Healthcare Providers & Services” companies have a potential upside of 13.10%. Given Alignment Healthcare’s higher probable upside, equities research analysts plainly believe Alignment Healthcare is more favorable than its competitors.

Summary

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

About Alignment Healthcare

Alignment Healthcare, Inc., a tech-enabled Medicare advantage company, operates consumer-centric health care platform for seniors in the United States. It provides customized health care designed to meet the needs of a diverse array of seniors through its Medicare advantage plans. The company was founded in 2013 and is based in Orange, California.