Alignment Healthcare (NASDAQ:ALHC) and BG Medicine (OTCMKTS:BGMD) Head to Head Review

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

Profitability

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

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

Volatility and Risk

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

Insider and Institutional Ownership

86.2% of Alignment Healthcare shares are owned by institutional investors. 6.5% of BG Medicine shares are owned by company insiders. Comparatively, 7.0% of Alignment Healthcare shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares BG Medicine 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
BG Medicine	N/A	N/A	N/A	N/A	N/A
Alignment Healthcare	$2.70 billion	1.39	-$128.04 million	($0.12)	-156.50

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

Analyst Ratings

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

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

Alignment Healthcare has a consensus price target of $20.35, indicating a potential upside of 8.36%. Given Alignment Healthcare’s stronger consensus rating and higher probable upside, analysts clearly 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 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.

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.