Sonic Healthcare (OTCMKTS:SKHHY – Get Free Report) and Alignment Healthcare (NASDAQ:ALHC – Get Free Report) are both mid-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Volatility & Risk
Sonic Healthcare has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, Alignment Healthcare has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.
Insider and Institutional Ownership
0.0% of Sonic Healthcare shares are held by institutional investors. Comparatively, 86.2% of Alignment Healthcare shares are held by institutional investors. 7.0% of Alignment Healthcare shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sonic Healthcare | $6.25 billion | 1.31 | $332.61 million | N/A | N/A |
| Alignment Healthcare | $2.70 billion | 1.52 | -$128.04 million | ($0.12) | -171.67 |
Sonic Healthcare has higher revenue and earnings than Alignment Healthcare.
Profitability
This table compares Sonic Healthcare and Alignment Healthcare’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sonic Healthcare | N/A | N/A | N/A |
| Alignment Healthcare | -0.57% | -16.23% | -2.20% |
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Sonic Healthcare and Alignment Healthcare, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sonic Healthcare | 1 | 0 | 1 | 0 | 2.00 |
| Alignment Healthcare | 1 | 3 | 9 | 1 | 2.71 |
Sonic Healthcare currently has a consensus price target of $30.15, indicating a potential upside of 81.85%. Alignment Healthcare has a consensus price target of $23.32, indicating a potential upside of 13.20%. Given Sonic Healthcare’s higher possible upside, equities analysts clearly believe Sonic Healthcare is more favorable than Alignment Healthcare.
Summary
Alignment Healthcare beats Sonic Healthcare on 7 of the 13 factors compared between the two stocks.
About Sonic Healthcare
Sonic Healthcare Limited offers medical diagnostic services to medical practitioners, hospitals, community health services, and their collective patients. The company provides laboratory medicine/pathology testing services, such as biochemistry, cytopathology, genetics, haematology, histopathology, immunoserology, microbiology, molecular pathology, prenatal testing, toxicology, and ancillary functions; and radiology services, including magnetic resonance imaging, computed tomography (CT), ultrasound, X-ray, mammography, nuclear medicine, PET CT, interventional procedures, and bone mineral densitometry. It offers primary care medical services comprising general practice clinics, occupational health services, skin cancer clinics, after-hours general practice services, general practice IT solutions, and community-based healthcare services. The company operates in Australia, the United Kingdom, Ireland, the United States, Germany, Switzerland, New Zealand, Belgium, and internationally. Sonic Healthcare Limited was incorporated in 1934 and is headquartered in Sydney, Australia.
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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