Head-To-Head Analysis: Alignment Healthcare (NASDAQ:ALHC) vs. P3 Health Partners (NASDAQ:PIII)

Alignment Healthcare (NASDAQ:ALHC) and P3 Health Partners (NASDAQ:PIII) are both small-cap healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, risk, profitability, analyst recommendations and earnings.

Analyst Ratings

This is a summary of recent ratings and target prices for Alignment Healthcare and P3 Health Partners, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alignment Healthcare	0	5	7	0	2.58
P3 Health Partners	1	2	1	0	2.00

Alignment Healthcare presently has a consensus price target of $19.18, suggesting a potential upside of 154.06%. P3 Health Partners has a consensus price target of $17.00, suggesting a potential upside of 243.43%. Given P3 Health Partners’ higher possible upside, analysts plainly believe P3 Health Partners is more favorable than Alignment Healthcare.

Volatility & Risk

Alignment Healthcare has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, P3 Health Partners has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500.

Profitability

This table compares Alignment Healthcare and P3 Health Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alignment Healthcare	0.89%	20.02%	3.46%
P3 Health Partners	-6.55%	N/A	-16.40%

Earnings & Valuation

This table compares Alignment Healthcare and P3 Health Partners”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alignment Healthcare	$3.95 billion	0.40	-$720,000.00	$0.19	39.74
P3 Health Partners	$1.46 billion	0.02	-$147.95 million	($33.00)	-0.15

Alignment Healthcare has higher revenue and earnings than P3 Health Partners. P3 Health Partners 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 and Institutional Ownership

86.2% of Alignment Healthcare shares are held by institutional investors. Comparatively, 7.7% of P3 Health Partners shares are held by institutional investors. 5.2% of Alignment Healthcare shares are held by company insiders. Comparatively, 10.9% of P3 Health Partners shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Alignment Healthcare beats P3 Health Partners on 11 of the 14 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 P3 Health Partners

P3 Health Partners Inc., a patient-centered and physician-led population health management company, provides superior care services in the United States. It operates clinics and wellness centers. P3 Health Partners Inc. was founded in 2020 and is based in Henderson, Nevada.