Alignment Healthcare (NASDAQ:ALHC – Get Free Report) and NeueHealth (NYSE:NEUE – Get Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, earnings, risk and institutional ownership.
Profitability
This table compares Alignment Healthcare and NeueHealth’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alignment Healthcare | -8.12% | -75.64% | -20.36% |
| NeueHealth | -71.23% | N/A | -1.21% |
Analyst Ratings
This is a summary of recent ratings for Alignment Healthcare and NeueHealth, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alignment Healthcare | 1 | 4 | 4 | 1 | 2.50 |
| NeueHealth | 0 | 1 | 0 | 0 | 2.00 |
Volatility and Risk
Alignment Healthcare has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500. Comparatively, NeueHealth has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.
Earnings & Valuation
This table compares Alignment Healthcare and NeueHealth’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alignment Healthcare | $1.82 billion | 0.51 | -$148.02 million | ($0.79) | -6.27 |
| NeueHealth | $1.16 billion | 0.04 | -$1.15 billion | ($151.20) | -0.04 |
Alignment Healthcare has higher revenue and earnings than NeueHealth. Alignment Healthcare is trading at a lower price-to-earnings ratio than NeueHealth, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
86.2% of Alignment Healthcare shares are held by institutional investors. Comparatively, 63.9% of NeueHealth shares are held by institutional investors. 6.3% of Alignment Healthcare shares are held by insiders. Comparatively, 64.3% of NeueHealth shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
Alignment Healthcare beats NeueHealth on 11 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 NeueHealth
NeueHealth, Inc., a healthcare company, provides various healthcare services for health consumers, providers, and payors in the United States. It operates through two segments: NeueCare and NeueSolutions. The NeueCare segment delivers healthcare services to ACA marketplace, medicare, and medicaid through owned and affiliated clinics. It operates risk-bearing clinics under the Centrum Health, AssociatesMD, and Premier Medical Associates brand names. The company also offers integrated system care solution, such as embedded pharmacy, laboratory, radiology, and population health focused specialty services; and chronic care management, transitions of care, and referral management services. The NeueSolutions segment enables providers and medical groups to succeed in performance-based arrangements; and participates in the centers for healthcare access to medicare beneficiaries. The company was formerly known as Bright Health Group, Inc. and changed its name to NeueHealth, Inc. in January 2024. NeueHealth, Inc. was incorporated in 2015 and is headquartered in Doral, Florida.
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