ALGN vs. ALHC: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ALGN and ALHC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ALGN’s market capitalization of 13.13 billion USD is substantially larger than ALHC’s 2.92 billion USD, indicating a significant difference in their market valuations.
With betas of 1.64 for ALGN and 1.22 for ALHC, both stocks show similar sensitivity to overall market movements.
| Symbol | ALGN | ALHC |
|---|---|---|
| Company Name | Align Technology, Inc. | Alignment Healthcare, Inc. |
| Country | US | US |
| Sector | Healthcare | Healthcare |
| Industry | Medical - Devices | Medical - Healthcare Plans |
| CEO | Mr. Joseph M. Hogan | Mr. John E. Kao |
| Price | 181.186 USD | 14.74 USD |
| Market Cap | 13.13 billion USD | 2.92 billion USD |
| Beta | 1.64 | 1.22 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | January 30, 2001 | March 26, 2021 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ALGN and ALHC over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ALGN
10.67%
Medical - Devices Industry
- Max
- 210.85%
- Q3
- 7.55%
- Median
- -28.09%
- Q1
- -129.75%
- Min
- -334.57%
ALGN’s Return on Equity of 10.67% is in the upper quartile for the Medical - Devices industry, signaling a highly effective use of shareholder capital to drive profitability compared to most of its peers.
ALHC
-81.24%
Medical - Healthcare Plans Industry
- Max
- 31.77%
- Q3
- 15.95%
- Median
- 10.31%
- Q1
- 2.65%
- Min
- -7.47%
ALHC has a negative Return on Equity of -81.24%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
Return on Invested Capital
ALGN
9.78%
Medical - Devices Industry
- Max
- 27.07%
- Q3
- -0.15%
- Median
- -27.86%
- Q1
- -97.22%
- Min
- -235.17%
ALGN’s Return on Invested Capital of 9.78% is in the upper quartile for the Medical - Devices industry, signifying a highly effective use of its capital to generate profits when compared to its peers.
ALHC
-15.02%
Medical - Healthcare Plans Industry
- Max
- 15.97%
- Q3
- 9.00%
- Median
- 4.74%
- Q1
- -6.62%
- Min
- -23.09%
ALHC has a negative Return on Invested Capital of -15.02%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
Net Profit Margin
ALGN
10.29%
Medical - Devices Industry
- Max
- 75.48%
- Q3
- -4.73%
- Median
- -36.57%
- Q1
- -145.48%
- Min
- -351.20%
ALGN’s Net Profit Margin of 10.29% is in the upper quartile for the Medical - Devices industry, signifying strong profitability and more effective cost management than most of its peers.
ALHC
-3.02%
Medical - Healthcare Plans Industry
- Max
- 5.43%
- Q3
- 2.23%
- Median
- 1.41%
- Q1
- -2.02%
- Min
- -4.66%
ALHC has a negative Net Profit Margin of -3.02%, indicating the company is operating at a net loss as its expenses exceed revenues.
Operating Profit Margin
ALGN
14.69%
Medical - Devices Industry
- Max
- 36.12%
- Q3
- -0.16%
- Median
- -35.51%
- Q1
- -160.30%
- Min
- -370.58%
ALGN’s Operating Profit Margin of 14.69% is in the upper quartile for the Medical - Devices industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
ALHC
-2.19%
Medical - Healthcare Plans Industry
- Max
- 8.22%
- Q3
- 4.15%
- Median
- 2.33%
- Q1
- -1.78%
- Min
- -9.00%
ALHC has a negative Operating Profit Margin of -2.19%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
Profitability at a Glance
| Symbol | ALGN | ALHC |
|---|---|---|
| Return on Equity (TTM) | 10.67% | -81.24% |
| Return on Assets (TTM) | 6.71% | -10.12% |
| Return on Invested Capital (TTM) | 9.78% | -15.02% |
| Net Profit Margin (TTM) | 10.29% | -3.02% |
| Operating Profit Margin (TTM) | 14.69% | -2.19% |
| Gross Profit Margin (TTM) | 69.87% | 11.57% |
Financial Strength
Current Ratio
ALGN
1.21
Medical - Devices Industry
- Max
- 11.44
- Q3
- 5.55
- Median
- 2.85
- Q1
- 1.55
- Min
- 0.01
ALGN’s Current Ratio of 1.21 falls into the lower quartile for the Medical - Devices industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
ALHC
1.69
Medical - Healthcare Plans Industry
- Max
- 2.92
- Q3
- 1.80
- Median
- 1.43
- Q1
- 0.84
- Min
- 0.07
ALHC’s Current Ratio of 1.69 aligns with the median group of the Medical - Healthcare Plans industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
ALGN
0.03
Medical - Devices Industry
- Max
- 1.95
- Q3
- 0.83
- Median
- 0.24
- Q1
- 0.07
- Min
- 0.00
ALGN’s Debt-to-Equity Ratio of 0.03 is in the lower quartile for the Medical - Devices industry. This points to a conservative financing strategy with low reliance on debt, resulting in lower financial risk but potentially limiting the scale of its strategic investments compared to more leveraged competitors.
ALHC
0.07
Medical - Healthcare Plans Industry
- Max
- 1.06
- Q3
- 0.78
- Median
- 0.71
- Q1
- 0.34
- Min
- 0.07
ALHC’s Debt-to-Equity Ratio of 0.07 is in the lower quartile for the Medical - Healthcare Plans industry. This points to a conservative financing strategy with low reliance on debt, resulting in lower financial risk but potentially limiting the scale of its strategic investments compared to more leveraged competitors.
Interest Coverage Ratio
ALGN
--
Medical - Devices Industry
- Max
- 43.93
- Q3
- 3.88
- Median
- -5.96
- Q1
- -22.92
- Min
- -61.44
Interest Coverage Ratio data for ALGN is currently unavailable.
ALHC
-2.98
Medical - Healthcare Plans Industry
- Max
- 16.30
- Q3
- 9.33
- Median
- 5.05
- Q1
- -0.34
- Min
- -7.69
ALHC has a negative Interest Coverage Ratio of -2.98. This indicates that its operating earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
Financial Strength at a Glance
| Symbol | ALGN | ALHC |
|---|---|---|
| Current Ratio (TTM) | 1.21 | 1.69 |
| Quick Ratio (TTM) | 1.08 | 1.69 |
| Debt-to-Equity Ratio (TTM) | 0.03 | 0.07 |
| Debt-to-Asset Ratio (TTM) | 0.02 | 0.01 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.94 | 10.90 |
| Interest Coverage Ratio (TTM) | -- | -2.98 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ALGN and ALHC. These metrics are based on the companies’ annual financial reports.
Revenue Growth (YoY)
EPS Growth (YoY)
Free Cash Flow Growth (YoY)
Dividend
Dividend Yield
ALGN
0.00%
Medical - Devices Industry
- Max
- 1.68%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ALGN currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting all earnings back into the business, though it may be less typical in mature, income-oriented sectors.
ALHC
0.00%
Medical - Healthcare Plans Industry
- Max
- 2.67%
- Q3
- 1.58%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ALHC currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting all earnings back into the business, though it may be less typical in mature, income-oriented sectors.
Dividend Payout Ratio
ALGN
0.00%
Medical - Devices Industry
- Max
- 43.20%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ALGN has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This typically means all profits are being reinvested for growth.
ALHC
0.00%
Medical - Healthcare Plans Industry
- Max
- 34.90%
- Q3
- 25.26%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ALHC has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This typically means all profits are being reinvested for growth.
Dividend at a Glance
| Symbol | ALGN | ALHC |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
Price-to-Earnings Ratio
ALGN
32.54
Medical - Devices Industry
- Max
- 97.30
- Q3
- 57.66
- Median
- 38.61
- Q1
- 14.67
- Min
- 0.18
ALGN’s P/E Ratio of 32.54 is comparable to the norm for the Medical - Devices industry, suggesting its valuation is neither at a significant premium nor a discount to its peers.
ALHC
-31.49
Medical - Healthcare Plans Industry
- Max
- 17.42
- Q3
- 17.14
- Median
- 15.16
- Q1
- 13.17
- Min
- 7.91
ALHC has a negative P/E Ratio of -31.49, indicating it has a net loss. A negative P/E is not a reliable indicator for valuation comparisons.
Forward P/E to Growth Ratio
ALGN
3.08
Medical - Devices Industry
- Max
- 4.34
- Q3
- 1.81
- Median
- 0.40
- Q1
- 0.07
- Min
- 0.00
ALGN’s Forward PEG Ratio of 3.08 is in the upper quartile for the Medical - Devices industry, indicating that investors are paying a premium for its expected growth compared to many of its competitors.
ALHC
-1.07
Medical - Healthcare Plans Industry
- Max
- 1.50
- Q3
- 0.98
- Median
- 0.78
- Q1
- 0.36
- Min
- 0.00
ALHC has a negative Forward PEG Ratio of -1.07. This typically results from either negative earnings (a current loss) or forecasts of declining future earnings, making the ratio not meaningful for valuation purposes.
Price-to-Book Ratio
ALGN
3.51
Medical - Devices Industry
- Max
- 12.47
- Q3
- 5.92
- Median
- 2.82
- Q1
- 0.95
- Min
- 0.00
ALGN’s P/B Ratio of 3.51 reflects the benchmark for the Medical - Devices industry, indicating that its market valuation relative to its book value is standard for the sector.
ALHC
26.39
Medical - Healthcare Plans Industry
- Max
- 4.31
- Q3
- 3.04
- Median
- 2.04
- Q1
- 1.08
- Min
- 0.04
ALHC’s P/B Ratio of 26.39 is exceptionally high, placing it well beyond the typical valuation range for the Medical - Healthcare Plans industry. This suggests that investors are willing to pay a significant premium over its book value, likely due to high expectations for future growth and profitability.
Price-to-Sales Ratio
ALGN
3.30
Medical - Devices Industry
- Max
- 17.05
- Q3
- 7.53
- Median
- 2.77
- Q1
- 1.03
- Min
- 0.01
ALGN’s P/S Ratio of 3.30 is valued in line with its peers in the Medical - Devices industry, suggesting the market’s valuation of its sales is typical for the sector.
ALHC
0.97
Medical - Healthcare Plans Industry
- Max
- 1.00
- Q3
- 0.64
- Median
- 0.42
- Q1
- 0.25
- Min
- 0.07
ALHC’s P/S Ratio of 0.97 is in the upper quartile for the Medical - Healthcare Plans industry. This suggests investors are paying a premium for each dollar of the company’s sales compared to its peers, indicating optimism about its growth prospects.
Valuation at a Glance
| Symbol | ALGN | ALHC |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 32.54 | -31.49 |
| Forward PEG Ratio (TTM) | 3.08 | -1.07 |
| Price-to-Sales Ratio (P/S, TTM) | 3.30 | 0.97 |
| Price-to-Book Ratio (P/B, TTM) | 3.51 | 26.39 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 20.82 | 152.88 |
| EV-to-EBITDA (TTM) | 15.39 | -61.57 |
| EV-to-Sales (TTM) | 3.11 | 0.83 |