Financial Contrast: Alignment Healthcare (NASDAQ:ALHC) & Progyny (NASDAQ:PGNY)

Alignment Healthcare (NASDAQ:ALHC) and Progyny (NASDAQ:PGNY) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, risk, earnings, analyst recommendations and valuation.

Institutional and Insider Ownership

86.2% of Alignment Healthcare shares are owned by institutional investors. Comparatively, 94.9% of Progyny shares are owned by institutional investors. 5.2% of Alignment Healthcare shares are owned by insiders. Comparatively, 9.9% of Progyny shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Alignment Healthcare and Progyny, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alignment Healthcare	0	3	6	2	2.91
Progyny	0	3	9	1	2.85

Alignment Healthcare currently has a consensus price target of $24.60, indicating a potential upside of 37.20%. Progyny has a consensus price target of $27.91, indicating a potential upside of 17.66%. Given Alignment Healthcare’s stronger consensus rating and higher probable upside, analysts clearly believe Alignment Healthcare is more favorable than Progyny.

Volatility and Risk

Alignment Healthcare has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Progyny has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.

Valuation and Earnings

This table compares Alignment Healthcare and Progyny”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alignment Healthcare	$4.26 billion	0.87	-$720,000.00	$0.09	199.22
Progyny	$1.29 billion	1.44	$58.52 million	$0.65	36.49

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

Profitability

This table compares Alignment Healthcare and Progyny’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alignment Healthcare	0.47%	11.50%	1.79%
Progyny	5.23%	12.76%	8.83%

Summary

Progyny beats Alignment Healthcare on 9 of the 15 factors compared between the two stocks.

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.

About Progyny

Progyny, Inc., a benefits management company, specializes in fertility and family building benefits solutions in the United States. Its fertility benefits solution includes differentiated benefits plan design, personalized concierge-style member support services, and selective network of fertility specialists. The company also offers Progyny Rx, an integrated pharmacy benefits solution that provides its members with access to the medications needed during their treatment. In addition, it provides assistance service programs where various services can be offered through a reimbursement program, including adoption, surrogacy, doula, and travel reimbursement when travel is required to receive medical services. The company was formerly known as Auxogyn, Inc. and changed its name to Progyny, Inc. in 2015. Progyny, Inc. was incorporated in 2008 and is headquartered in New York, New York.