Alignment Healthcare, Inc. (ALHC) vs Elevance Health, Inc. (ELV)

Alignment Healthcare, Inc. and Elevance Health, Inc. are both Healthcare Plans companies. Elevance Health, Inc. is the larger, with a market value of $89.4B against $1.5B — 61.2× the size. Elevance Health, Inc. trades at the lower P/E: 17.7× against 46.4×. Alignment Healthcare, Inc. grew revenue faster over the last twelve months: 35.9% against 3.60%. Elevance Health, Inc. has the higher net margin (2.55% vs 0.59%) and the higher return on invested capital (12.8% vs 0.00%). Across the 22 metrics below, Elevance Health, Inc. leads on 14 and Alignment Healthcare, Inc. on 8.

Valuation

Metric ALHC ELV Healthcare Plans median
P/E 46.37 17.67 22.86
P/S 0.30 0.44 0.39
P/B 5.28 2.00 2.57
Price to free cash flow 19.00 13.78 13.78
EV/EBITDA 13.66 9.00 11.21
EV/Sales 0.21 0.41 0.38
Earnings yield 2.16% 5.66% 3.81%
Free cash flow yield 5.26% 7.26% 6.79%

Profitability

Metric ALHC ELV Healthcare Plans median
Gross margin 11.93% 15.47% 19.37%
Operating margin 0.88% 3.81% 1.93%
Net margin 0.59% 2.55% 1.03%
Free cash flow margin 1.56% 3.23% 2.92%
Return on equity 13.18% 11.56% 9.19%
Return on assets 2.41% 4.10% 2.40%
Return on invested capital 0.00% 12.76% 4.25%

Growth

Metric ALHC ELV Healthcare Plans median
Revenue growth (TTM) 35.87% 3.60% 7.57%
EPS growth (last fiscal year) 100.00% (1.83%) (8.27%)
Revenue growth, 5-year CAGR 32.71% 10.32% 11.88%
Net income growth, 5-year CAGR 0.00% 4.37% 0.00%

Health

Metric ALHC ELV Healthcare Plans median
Debt to equity 1.17 0.69 0.69
Current ratio 1.71 1.47 1.32
Net debt to EBITDA (6.15) (0.44) 0.05

Dividend

Metric ALHC ELV Healthcare Plans median
Dividend yield — 1.66% 2.09%
Payout ratio — 0.29 0.33

Size

Metric ALHC ELV Healthcare Plans median
Market cap 1.46b 89.36b 22.29b

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