Alignment Healthcare, Inc. (ALHC) vs Humana Inc. (HUM)

Alignment Healthcare, Inc. and Humana Inc. are both Healthcare Plans companies. Humana Inc. is the larger, with a market value of $45.7B against $1.6B — 29.1× the size. Humana Inc. trades at the lower P/E: 37.4× against 39.1×. Alignment Healthcare, Inc. grew revenue faster over the last twelve months: 37.2% against 18.3%. Alignment Healthcare, Inc. has the higher net margin (0.89% vs 0.88%) and the lower return on invested capital (0.00% vs 17.5%). Across the 22 metrics below, Alignment Healthcare, Inc. leads on 11 and Humana Inc. on 11.

Valuation

Metric ALHC HUM Healthcare Plans median
P/E 39.10 37.36 23.75
P/S 0.37 0.33 0.40
P/B 6.42 2.48 2.48
Price to free cash flow 9.59 24.23 11.15
EV/EBITDA 15.14 10.94 10.94
EV/Sales 0.29 0.26 0.37
Earnings yield 2.56% 2.68% 3.25%
Free cash flow yield 10.42% 4.13% 8.15%

Profitability

Metric ALHC HUM Healthcare Plans median
Gross margin 12.55% 13.65% 19.04%
Operating margin 1.20% 1.86% 1.93%
Net margin 0.89% 0.88% 1.04%
Free cash flow margin 3.88% 1.35% 3.18%
Return on equity 20.04% 6.81% 12.48%
Return on assets 3.57% 2.38% 2.98%
Return on invested capital 0.00% 17.52% 2.04%

Growth

Metric ALHC HUM Healthcare Plans median
Revenue growth (TTM) 37.21% 18.33% 7.57%
EPS growth (last fiscal year) 100.00% (1.40%) —
Revenue growth, 5-year CAGR 32.71% 10.94% 11.88%
Net income growth, 5-year CAGR 0.00% (18.81%) 0.00%

Health

Metric ALHC HUM Healthcare Plans median
Debt to equity 1.22 0.74 0.70
Current ratio 1.70 1.74 1.32
Net debt to EBITDA (6.15) (2.14) 0.05

Dividend

Metric ALHC HUM Healthcare Plans median
Dividend yield — 1.07% 1.53%
Payout ratio 0.00 0.12 0.00

Size

Metric ALHC HUM Healthcare Plans median
Market cap 1.57b 45.67b 20.34b

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