Head to Head Review: Elevance Health (NYSE:ELV) versus Alignment Healthcare (NASDAQ:ALHC)

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

Institutional and Insider Ownership

86.2% of Alignment Healthcare shares are held by institutional investors. Comparatively, 89.2% of Elevance Health shares are held by institutional investors. 5.2% of Alignment Healthcare shares are held by insiders. Comparatively, 0.3% of Elevance Health shares are held by 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.

Profitability

This table compares Alignment Healthcare and Elevance Health’s 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%
Elevance Health	2.55%	14.97%	5.31%

Earnings and Valuation

This table compares Alignment Healthcare and Elevance Health”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	$3.95 billion	0.39	-$720,000.00	$0.13	56.88
Elevance Health	$199.12 billion	0.46	$5.66 billion	$23.45	18.17

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

Risk and Volatility

Alignment Healthcare has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Elevance Health has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Alignment Healthcare and Elevance Health, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alignment Healthcare	1	6	6	0	2.38
Elevance Health	0	7	15	0	2.68

Alignment Healthcare currently has a consensus target price of $14.00, suggesting a potential upside of 89.32%. Elevance Health has a consensus target price of $456.48, suggesting a potential upside of 7.14%. Given Alignment Healthcare’s higher probable upside, analysts plainly believe Alignment Healthcare is more favorable than Elevance Health.

Summary

Elevance Health beats Alignment Healthcare on 10 of the 14 factors compared between the two stocks.

About Alignment Healthcare

Alignment Healthcare, Inc. is a technology-enabled healthcare company focused primarily on serving older adults through Medicare Advantage plans. Its health plans, offered under the Alignment Health Plan name, combine insurance coverage with care coordination and support intended to address members’ medical and everyday health needs. The company uses a care model that includes personalized care teams, member support and technology to help coordinate services across providers. Its Medicare Advantage offerings include plan options such as HMO and PPO products, with availability and benefits varying by location.

About Elevance Health

Elevance Health, Inc. is a U.S. health benefits and services company. Formerly known as Anthem, Inc., it adopted the Elevance Health name in 2022 while retaining the Anthem brand for many of its health plans. The company offers medical, pharmacy, dental, vision and behavioral health coverage, including plans for individuals and employers as well as programs serving Medicare and Medicaid members. Its services also include care management, pharmacy benefit services and other health-related capabilities through its Carelon business.