Comparing CorVel (NASDAQ:CRVL) & Alignment Healthcare (NASDAQ:ALHC)

CorVel (NASDAQ:CRVL) and Alignment Healthcare (NASDAQ:ALHC) are both healthcare companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.

Institutional and Insider Ownership

51.4% of CorVel shares are held by institutional investors. Comparatively, 86.2% of Alignment Healthcare shares are held by institutional investors. 39.7% of CorVel shares are held by insiders. Comparatively, 5.2% of Alignment Healthcare shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares CorVel and Alignment Healthcare”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CorVel	$958.53 million	3.98	$110.34 million	$2.25	33.21
Alignment Healthcare	$3.95 billion	0.41	-$720,000.00	$0.19	40.74

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for CorVel and Alignment Healthcare, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CorVel	0	1	0	0	2.00
Alignment Healthcare	0	4	7	0	2.64

Alignment Healthcare has a consensus target price of $23.60, suggesting a potential upside of 204.91%. Given Alignment Healthcare’s stronger consensus rating and higher possible upside, analysts plainly believe Alignment Healthcare is more favorable than CorVel.

Volatility & Risk

CorVel has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, Alignment Healthcare has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CorVel	11.72%	29.92%	17.82%
Alignment Healthcare	0.89%	20.02%	3.46%

About CorVel

CorVel Corporation provides workers’ compensation, auto, liability, and health solutions. It applies technology, including artificial intelligence, machine learning, and natural language processing to enhance the managing of episodes of care and the related health care costs. The company also offers network solutions services, including automated medical fee auditing, preferred provider management and reimbursement, retrospective utilization review, facility claim review, professional review, pharmacy, directed care, clearinghouse, independent medical examination, and inpatient medical bill review services, as well as Medicare solutions. In addition, it provides a range of patient management services, such as claims management, case management, 24/7 nurse triage, utilization management, vocational rehabilitation, and life care planning, as well as processing of claims for self-insured payors with respect to property and casualty insurance. The company offers solutions to employers, third party administrators, insurance companies, and government agencies to assist them in managing the medical costs and monitoring the quality of care associated with healthcare claims. CorVel Corporation was incorporated in 1987 and is based in Fort Worth, Texas.

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.