Alignment Healthcare (NASDAQ:ALHC) and Surgery Partners (NASDAQ:SGRY) Financial Analysis

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

Analyst Recommendations

This is a summary of current ratings and target prices for Alignment Healthcare and Surgery Partners, as provided 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	8	3	0	2.17

Alignment Healthcare currently has a consensus price target of $14.00, indicating a potential upside of 90.74%. Surgery Partners has a consensus price target of $20.14, indicating a potential downside of 13.21%. Given Alignment Healthcare’s stronger consensus rating and higher probable upside, analysts clearly believe Alignment Healthcare is more favorable than Surgery Partners.

Volatility & Risk

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

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	-2.63%	0.88%	0.34%

Insider & Institutional Ownership

86.2% of Alignment Healthcare shares are held by institutional investors. 5.2% of Alignment Healthcare shares are held by company insiders. Comparatively, 2.0% of Surgery Partners shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alignment Healthcare	$3.95 billion	0.39	-$720,000.00	$0.13	56.46
Surgery Partners	$3.31 billion	0.92	-$77.90 million	($0.70)	-33.14

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., 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 Surgery Partners

Surgery Partners, Inc., together with its subsidiaries, owns and operates a network of surgical facilities and ancillary services in the United States. The company provides ambulatory surgery centers and surgical hospitals that offer non-emergency surgical procedures in various specialties, including orthopedics and pain management, ophthalmology, gastroenterology, and general surgery. It offers diagnostic imaging, laboratory, obstetrics, oncology, pharmacy, physical therapy, and wound care; and ancillary services, including multi-specialty physician practices, urgent care facilities, and anesthesia services. In addition, it offers single- and multi-specialty facilities. Surgery Partners, Inc. was founded in 2004 and is headquartered in Brentwood, Tennessee.