Head to Head Review: Alignment Healthcare (NASDAQ:ALHC) versus Molina Healthcare (NYSE:MOH)

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

Institutional and Insider Ownership

77.5% of Alignment Healthcare shares are held by institutional investors. Comparatively, 93.9% of Molina Healthcare shares are held by institutional investors. 1.5% of Molina Healthcare shares are held by 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.

Analyst Ratings

This is a summary of recent recommendations for Alignment Healthcare and Molina Healthcare, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alignment Healthcare 0 3 4 0 2.57
Molina Healthcare 1 2 9 0 2.67

Alignment Healthcare currently has a consensus target price of $30.67, suggesting a potential upside of 29.61%. Molina Healthcare has a consensus target price of $255.42, suggesting a potential upside of 1.82%. Given Alignment Healthcare’s higher probable upside, equities analysts plainly believe Alignment Healthcare is more favorable than Molina Healthcare.

Earnings and Valuation

This table compares Alignment Healthcare and Molina 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 $959.22 million 4.62 -$22.93 million N/A N/A
Molina Healthcare $19.42 billion 0.75 $673.00 million $10.67 23.51

Molina Healthcare has higher revenue and earnings than Alignment Healthcare.

Profitability

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

Net Margins Return on Equity Return on Assets
Alignment Healthcare N/A N/A N/A
Molina Healthcare 3.38% 33.87% 8.13%

Summary

Molina Healthcare beats Alignment Healthcare on 9 of the 11 factors compared between the two stocks.

About Alignment Healthcare

Alignment Healthcare, Inc. provides a consumer-centric platform that delivers customized health care to seniors in the United States. It offers medicare advantage plans and health plan options to its partners and patients with customized care and service; and preferred provider organization offerings. The company was founded in 2013 and is based in Orange, California.

About Molina Healthcare

Molina Healthcare, Inc. provides managed health care services to low-income families and individuals under the Medicaid and Medicare programs and through the state insurance marketplaces. The company operates in two segments, Health Plans and Other. As of December 31, 2020, it served approximately 4.0 million members eligible for Medicaid, Medicare, and other government-sponsored healthcare programs in 15 states. The company offers its health care services for its members through contracts with a network of providers, including independent physicians and physician groups, hospitals, ancillary providers, and pharmacies. Molina Healthcare, Inc. was founded in 1980 and is headquartered in Long Beach, California.

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