Pediatrix Medical Group (NYSE:MD) and Alignment Healthcare (NASDAQ:ALHC) Head-To-Head Survey

Pediatrix Medical Group (NYSE:MD) and Alignment Healthcare (NASDAQ:ALHC) are both medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, earnings, analyst recommendations, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for Pediatrix Medical Group and Alignment Healthcare, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pediatrix Medical Group	0	5	1	0	2.17
Alignment Healthcare	0	3	6	2	2.91

Pediatrix Medical Group currently has a consensus price target of $22.50, suggesting a potential downside of 0.14%. Alignment Healthcare has a consensus price target of $24.60, suggesting a potential upside of 47.66%. Given Alignment Healthcare’s stronger consensus rating and higher possible upside, analysts clearly believe Alignment Healthcare is more favorable than Pediatrix Medical Group.

Valuation & Earnings

This table compares Pediatrix Medical Group and Alignment Healthcare”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pediatrix Medical Group	$1.91 billion	0.97	$165.39 million	$2.06	10.94
Alignment Healthcare	$4.26 billion	0.81	-$720,000.00	$0.09	185.11

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

Insider & Institutional Ownership

97.7% of Pediatrix Medical Group shares are owned by institutional investors. Comparatively, 86.2% of Alignment Healthcare shares are owned by institutional investors. 1.8% of Pediatrix Medical Group shares are owned by company insiders. Comparatively, 5.2% of Alignment Healthcare shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Pediatrix Medical Group has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, Alignment Healthcare has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

Profitability

This table compares Pediatrix Medical Group and Alignment Healthcare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pediatrix Medical Group	9.02%	19.94%	8.02%
Alignment Healthcare	0.47%	11.50%	1.79%

Summary

Alignment Healthcare beats Pediatrix Medical Group on 8 of the 15 factors compared between the two stocks.

About Pediatrix Medical Group

Pediatrix Medical Group, Inc., together with its subsidiaries, provides newborn, maternal-fetal, pediatric cardiology, and other pediatric subspecialty care services in the United States. It offers neonatal care services, such as clinical care to babies born prematurely or with complications within specific units at hospitals through neonatal physician subspecialists, neonatal nurse practitioners, and other pediatric clinicians. The company also provides maternal-fetal care services, including inpatient and office-based clinical care to expectant mothers and unborn babies through affiliated maternal-fetal medicine subspecialists, as well as obstetricians and other clinicians, including maternal-fetal nurse practitioners, certified nurse mid-wives, sonographers, and genetic counselors. In addition, it offers pediatric cardiology care services comprising inpatient and office-based pediatric cardiology care of the fetus, infant, child, and adolescent patient with congenital heart defects and acquired heart disease, as well as adults with congenital heart defects through affiliated pediatric cardiologist subspecialists and other related clinical professionals, including pediatric nurse practitioners, echocardiographers, other diagnostic technicians, and exercise physiologists; and specialized cardiac care to the fetus, neonatal and pediatric patients. Further, the company provides other pediatric subspecialty care services, such as pediatric intensivists, pediatric hospitalists, pediatric surgeons, and pediatric ophthalmologists, as well as pediatric ear, nose, and throat physicians, pediatric gastroenterologists; and support services in the areas of hospitals, primarily in the pediatric emergency rooms, labor and delivery areas, and nursery and pediatric departments. The company was formerly known as MEDNAX, Inc. and changed its name to Pediatrix Medical Group, Inc. in July 2022. Pediatrix Medical Group, Inc. was founded in 1979 and is based in Sunrise, 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.