Critical Comparison: BG Medicine (OTCMKTS:BGMD) and Alignment Healthcare (NASDAQ:ALHC)

Alignment Healthcare (NASDAQ:ALHC) and BG Medicine (OTCMKTS:BGMD) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.

Profitability

This table compares Alignment Healthcare and BG Medicine’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alignment Healthcare	-0.57%	-16.23%	-2.20%
BG Medicine	N/A	N/A	N/A

Volatility & Risk

Alignment Healthcare has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, BG Medicine has a beta of 2.23, indicating that its share price is 123% more volatile than the S&P 500.

Valuation and Earnings

This table compares Alignment Healthcare and BG Medicine”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alignment Healthcare	$2.70 billion	1.40	-$128.04 million	($0.12)	-157.83
BG Medicine	N/A	N/A	N/A	N/A	N/A

BG Medicine has lower revenue, but higher earnings than Alignment Healthcare.

Insider and Institutional Ownership

86.2% of Alignment Healthcare shares are held by institutional investors. 6.6% of Alignment Healthcare shares are held by insiders. Comparatively, 6.5% of BG Medicine shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Alignment Healthcare and BG Medicine, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alignment Healthcare	1	3	8	1	2.69
BG Medicine	0	0	0	0	0.00

Alignment Healthcare currently has a consensus price target of $20.35, suggesting a potential upside of 7.44%. Given Alignment Healthcare’s stronger consensus rating and higher probable upside, equities analysts plainly believe Alignment Healthcare is more favorable than BG Medicine.

Summary

Alignment Healthcare beats BG Medicine on 7 of the 11 factors compared between the two stocks.

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.

About BG Medicine

BG Medicine, Inc. engages in the development and commercialization of diagnostic products used to guide the patients suffering from heart failure and related disorders in the United States. The company offers BGM Galectin-3 Test, an in vitro diagnostic device that measures galectin-3 in serum or plasma by enzyme linked immunosorbent assay on a microtiter plate platform; and CardioSCORE Test, a multi-analyte biomarker-based blood test used for the assessment of near-term risk of atherothrombotic cardiovascular events, such as heart attack and ischemic stroke. It has license, development, and commercialization agreements with Abbott Laboratories, bioMérieux SA, Siemens Healthcare Diagnostics Inc., and Alere Inc. for the automated instrument versions of galectin-3 test; and a strategic collaboration with Abbott Laboratories to develop and commercialize galectin-3 assay kits, and related control kits and calibrators. The company was formerly known as Beyond Genomics, Inc. and changed its name to BG Medicine, Inc. in October 2004. BG Medicine, Inc. was founded in 2000 and is headquartered in Waltham, Massachusetts.