NeueHealth (NYSE:NEUE – Get Free Report) and Alignment Healthcare (NASDAQ:ALHC – Get Free Report) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.
Institutional and Insider Ownership
63.9% of NeueHealth shares are owned by institutional investors. Comparatively, 86.2% of Alignment Healthcare shares are owned by institutional investors. 64.3% of NeueHealth shares are owned by company insiders. Comparatively, 6.3% of Alignment Healthcare shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
NeueHealth has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Alignment Healthcare has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| NeueHealth | -71.23% | N/A | -1.21% |
| Alignment Healthcare | -7.81% | -91.06% | -22.63% |
Valuation & Earnings
This table compares NeueHealth and Alignment Healthcare’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NeueHealth | $1.16 billion | 0.04 | -$1.15 billion | ($151.20) | -0.04 |
| Alignment Healthcare | $1.82 billion | 0.72 | -$148.02 million | ($0.84) | -8.23 |
Alignment Healthcare has higher revenue and earnings than NeueHealth. Alignment Healthcare is trading at a lower price-to-earnings ratio than NeueHealth, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for NeueHealth and Alignment Healthcare, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NeueHealth | 0 | 1 | 0 | 0 | 2.00 |
| Alignment Healthcare | 1 | 3 | 4 | 1 | 2.56 |
NeueHealth presently has a consensus target price of $8.00, suggesting a potential upside of 32.23%. Alignment Healthcare has a consensus target price of $8.69, suggesting a potential upside of 25.82%. Given NeueHealth’s higher possible upside, research analysts clearly believe NeueHealth is more favorable than Alignment Healthcare.
Summary
Alignment Healthcare beats NeueHealth on 10 of the 15 factors compared between the two stocks.
About NeueHealth
NeueHealth, Inc., a healthcare company, provides various healthcare services for health consumers, providers, and payors in the United States. It operates through two segments: NeueCare and NeueSolutions. The NeueCare segment delivers healthcare services to ACA marketplace, medicare, and medicaid through owned and affiliated clinics. It operates risk-bearing clinics under the Centrum Health, AssociatesMD, and Premier Medical Associates brand names. The company also offers integrated system care solution, such as embedded pharmacy, laboratory, radiology, and population health focused specialty services; and chronic care management, transitions of care, and referral management services. The NeueSolutions segment enables providers and medical groups to succeed in performance-based arrangements; and participates in the centers for healthcare access to medicare beneficiaries. The company was formerly known as Bright Health Group, Inc. and changed its name to NeueHealth, Inc. in January 2024. NeueHealth, Inc. was incorporated in 2015 and is headquartered in Doral, Florida.
About Alignment Healthcare
Alignment Healthcare, Inc., a tech-enabled Medicare advantage company, operates consumer-centric health care platform for seniors in the United States. It provides customized health care designed to meet the needs of a diverse array of seniors through its Medicare advantage plans. The company was founded in 2013 and is based in Orange, California.
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