Alignment Healthcare (NASDAQ:ALHC – Get Free Report) and Sonic Healthcare (OTCMKTS:SKHHY – Get Free Report) are both mid-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.
Risk and Volatility
Alignment Healthcare has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, Sonic Healthcare has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500.
Profitability
This table compares Alignment Healthcare and Sonic Healthcare’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alignment Healthcare | -0.57% | -16.23% | -2.20% |
| Sonic Healthcare | N/A | N/A | N/A |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alignment Healthcare | 1 | 3 | 9 | 1 | 2.71 |
| Sonic Healthcare | 1 | 0 | 1 | 0 | 2.00 |
Alignment Healthcare currently has a consensus target price of $23.32, suggesting a potential upside of 13.20%. Sonic Healthcare has a consensus target price of $30.15, suggesting a potential upside of 81.85%. Given Sonic Healthcare’s higher possible upside, analysts plainly believe Sonic Healthcare is more favorable than Alignment Healthcare.
Institutional & Insider Ownership
86.2% of Alignment Healthcare shares are owned by institutional investors. Comparatively, 0.0% of Sonic Healthcare shares are owned by institutional investors. 7.0% of Alignment Healthcare shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Alignment Healthcare and Sonic Healthcare”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alignment Healthcare | $2.70 billion | 1.52 | -$128.04 million | ($0.12) | -171.67 |
| Sonic Healthcare | $6.25 billion | 1.31 | $332.61 million | N/A | N/A |
Sonic Healthcare has higher revenue and earnings than Alignment Healthcare.
Summary
Alignment Healthcare beats Sonic Healthcare on 7 of the 13 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 Sonic Healthcare
Sonic Healthcare Limited offers medical diagnostic services to medical practitioners, hospitals, community health services, and their collective patients. The company provides laboratory medicine/pathology testing services, such as biochemistry, cytopathology, genetics, haematology, histopathology, immunoserology, microbiology, molecular pathology, prenatal testing, toxicology, and ancillary functions; and radiology services, including magnetic resonance imaging, computed tomography (CT), ultrasound, X-ray, mammography, nuclear medicine, PET CT, interventional procedures, and bone mineral densitometry. It offers primary care medical services comprising general practice clinics, occupational health services, skin cancer clinics, after-hours general practice services, general practice IT solutions, and community-based healthcare services. The company operates in Australia, the United Kingdom, Ireland, the United States, Germany, Switzerland, New Zealand, Belgium, and internationally. Sonic Healthcare Limited was incorporated in 1934 and is headquartered in Sydney, Australia.
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