Alignment Healthcare, Inc. (ALHC) vs Clover Health Investments, Corp. (CLOV)

Alignment Healthcare, Inc. and Clover Health Investments, Corp. are both Healthcare Plans companies. Clover Health Investments, Corp. is the larger, with a market value of $2.5B against $1.6B — 1.6× the size. Clover Health Investments, Corp. has negative trailing earnings, so its P/E is not meaningful; Alignment Healthcare, Inc. trades at 39.1×. Clover Health Investments, Corp. grew revenue faster over the last twelve months: 54.0% against 37.2%. Alignment Healthcare, Inc. has the higher net margin (0.89% vs −0.74%) and the higher return on invested capital (0.00% vs −8.62%). Across the 19 metrics below, Alignment Healthcare, Inc. leads on 15 and Clover Health Investments, Corp. on 4.

Valuation

Metric ALHC CLOV Healthcare Plans median
P/E 39.10 n/m 23.75
P/S 0.37 0.95 0.40
P/B 6.42 6.26 2.48
Price to free cash flow 9.59 31.72 11.15
EV/EBITDA 15.14 n/m 10.94
EV/Sales 0.29 0.85 0.37
Earnings yield 2.56% (1.11%) 3.25%
Free cash flow yield 10.42% 3.15% 8.15%

Profitability

Metric ALHC CLOV Healthcare Plans median
Gross margin 12.55% 18.57% 19.04%
Operating margin 1.20% (0.74%) 1.93%
Net margin 0.89% (0.74%) 1.04%
Free cash flow margin 3.88% 3.00% 3.18%
Return on equity 20.04% (5.10%) 12.48%
Return on assets 3.57% (2.84%) 2.98%
Return on invested capital 0.00% (8.62%) 2.04%

Growth

Metric ALHC CLOV Healthcare Plans median
Revenue growth (TTM) 37.21% 54.03% 7.57%
EPS growth (last fiscal year) 100.00% (70.00%) —
Revenue growth, 5-year CAGR 32.71% 23.39% 11.88%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ALHC CLOV Healthcare Plans median
Debt to equity 1.22 0.00 0.70
Current ratio 1.70 1.50 1.32
Net debt to EBITDA (6.15) 1.40 0.05

Dividend

Metric ALHC CLOV Healthcare Plans median
Dividend yield — — 1.53%
Payout ratio 0.00 0.00 0.00

Size

Metric ALHC CLOV Healthcare Plans median
Market cap 1.57b 2.48b 20.34b

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