Analyzing Icon (NASDAQ:ICLR) & Alignment Healthcare (NASDAQ:ALHC)

Alignment Healthcare (NASDAQ:ALHCGet Free Report) and Icon (NASDAQ:ICLRGet Free Report) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, earnings, profitability, dividends, valuation and analyst recommendations.

Volatility & Risk

Alignment Healthcare has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Icon has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500.

Profitability

This table compares Alignment Healthcare and Icon’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%
Icon 7.40% 10.58% 6.01%

Valuation & Earnings

This table compares Alignment Healthcare and Icon”s gross 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 1.55 -$128.04 million ($0.12) -175.00
Icon $8.28 billion 1.93 $791.47 million $7.39 26.74

Icon has higher revenue and earnings than Alignment Healthcare. Alignment Healthcare is trading at a lower price-to-earnings ratio than Icon, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

86.2% of Alignment Healthcare shares are held by institutional investors. Comparatively, 95.6% of Icon shares are held by institutional investors. 6.6% of Alignment Healthcare shares are held by company insiders. Comparatively, 44.0% of Icon shares are held by company 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 recommendations and price targets for Alignment Healthcare and Icon, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alignment Healthcare 1 3 8 1 2.69
Icon 0 11 9 2 2.59

Alignment Healthcare currently has a consensus target price of $20.35, suggesting a potential downside of 3.10%. Icon has a consensus target price of $205.31, suggesting a potential upside of 3.91%. Given Icon’s higher possible upside, analysts plainly believe Icon is more favorable than Alignment Healthcare.

Summary

Icon beats Alignment Healthcare on 14 of the 15 factors compared between the two stocks.

About Alignment Healthcare

(Get Free Report)

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 Icon

(Get Free Report)

ICON Public Limited Company, a clinical research organization, provides outsourced development and commercialization services in Ireland, rest of Europe, the United States, and internationally. The company specializes in the strategic development, management, and analysis of programs that support various stages of the clinical development process from compound selection to Phase I-IV clinical studies. It also offers clinical development services, including all phases of development, peri and post approval, data solutions, and site and patient access services; clinical trial management, consulting, and contract staffing services; and commercial services comprising clinical development strategy, planning and trial design, full study execution, and post-market commercialization. In addition, the company provides laboratory services, including bionanalytical, biomarker, vaccine, good manufacturing practice, and central laboratory services, as well as full-service and functional service partnerships to customers. Further, it offers adaptive trials, cardiac safety solutions, clinical and scientific operations, consulting and advisory, commercial positioning, decentralized and hybrid clinical trials, early clinical, laboratories, language services, medical imaging, real world intelligence, site and patient, and strategic solutions. The company serves pharmaceutical, biotechnology, and medical device industries, as well as government and public health organizations. ICON Public Limited Company was incorporated in 1990 and is headquartered in Dublin, Ireland.

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