Alignment Healthcare, Inc. (ALHC) vs Centene Corporation (CNC)

Alignment Healthcare, Inc. and Centene Corporation are both Healthcare Plans companies. Centene Corporation is the larger, with a market value of $36.7B against $1.6B — 23.2× the size. Centene Corporation trades at the lower P/E: 23.5× against 48.4×. Alignment Healthcare, Inc. grew revenue faster over the last twelve months: 35.9% against 9.71%. Centene Corporation has the higher net margin (0.72% vs 0.59%) and the higher return on invested capital (4.42% vs 0.00%). Across the 21 metrics below, Centene Corporation leads on 12 and Alignment Healthcare, Inc. on 9.

Valuation

Metric ALHC CNC Healthcare Plans median
P/E 48.41 23.48 22.50
P/S 0.31 0.17 0.40
P/B 5.52 1.55 2.77
Price to free cash flow 19.84 8.73 14.76
EV/EBITDA 14.50 11.81 12.61
EV/Sales 0.23 0.13 0.36
Earnings yield 2.07% 4.26% 3.79%
Free cash flow yield 5.04% 11.45% 6.62%

Profitability

Metric ALHC CNC Healthcare Plans median
Gross margin 11.93% 7.78% 19.35%
Operating margin 0.88% 0.49% 2.48%
Net margin 0.59% 0.72% 1.45%
Free cash flow margin 1.56% 1.93% 3.26%
Return on equity 13.18% 6.74% 13.58%
Return on assets 2.41% 1.81% 3.11%
Return on invested capital 0.00% 4.42% 5.93%

Growth

Metric ALHC CNC Healthcare Plans median
Revenue growth (TTM) 35.87% 9.71% 6.77%
EPS growth (last fiscal year) 100.00% (314.42%) (8.27%)
Revenue growth, 5-year CAGR 32.71% 11.88% 11.88%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ALHC CNC Healthcare Plans median
Debt to equity 1.17 0.70 0.67
Current ratio 1.71 1.16 1.32
Net debt to EBITDA (6.15) 0.46 0.05

Dividend

Metric ALHC CNC Healthcare Plans median
Dividend yield — — 2.11%
Payout ratio — — 0.31

Size

Metric ALHC CNC Healthcare Plans median
Market cap 1.58b 36.72b 24.02b

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