ALHC vs. LLY: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ALHC and LLY, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
LLY’s market capitalization of 739.87 billion USD is significantly greater than ALHC’s 2.68 billion USD, highlighting its more substantial market valuation.
ALHC’s beta of 1.22 points to significantly higher volatility compared to LLY (beta: 0.39), suggesting ALHC has greater potential for both gains and losses relative to market movements.
| Symbol | ALHC | LLY |
|---|---|---|
| Company Name | Alignment Healthcare, Inc. | Eli Lilly and Company |
| Country | US | US |
| Sector | Healthcare | Healthcare |
| Industry | Medical - Healthcare Plans | Drug Manufacturers - General |
| CEO | John E. Kao | David A. Ricks |
| Price | 13.57 USD | 780.67 USD |
| Market Cap | 2.68 billion USD | 739.87 billion USD |
| Beta | 1.22 | 0.39 |
| Exchange | NASDAQ | NYSE |
| IPO Date | March 26, 2021 | June 1, 1972 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ALHC and LLY by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ALHC
-81.24%
Medical - Healthcare Plans Industry
- Max
- 13.94%
- Q3
- 13.62%
- Median
- 11.42%
- Q1
- 7.74%
- Min
- 6.98%
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.
LLY
76.92%
Drug Manufacturers - General Industry
- Max
- 95.59%
- Q3
- 76.92%
- Median
- 30.71%
- Q1
- 8.97%
- Min
- -14.85%
LLY’s Return on Equity of 76.92% is on par with the norm for the Drug Manufacturers - General industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
ALHC
-15.02%
Medical - Healthcare Plans Industry
- Max
- 15.50%
- Q3
- 7.12%
- Median
- 5.48%
- Q1
- -3.47%
- Min
- -15.02%
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.
LLY
25.72%
Drug Manufacturers - General Industry
- Max
- 25.72%
- Q3
- 17.89%
- Median
- 11.47%
- Q1
- 9.39%
- Min
- 2.87%
In the upper quartile for the Drug Manufacturers - General industry, LLY’s Return on Invested Capital of 25.72% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
ALHC
-3.02%
Medical - Healthcare Plans Industry
- Max
- 3.23%
- Q3
- 2.62%
- Median
- 1.70%
- Q1
- 1.27%
- Min
- 1.22%
ALHC has a negative Net Profit Margin of -3.02%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
LLY
22.66%
Drug Manufacturers - General Industry
- Max
- 34.51%
- Q3
- 23.04%
- Median
- 14.73%
- Q1
- 11.78%
- Min
- 2.18%
LLY’s Net Profit Margin of 22.66% is aligned with the median group of its peers in the Drug Manufacturers - General industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
ALHC
-2.19%
Medical - Healthcare Plans Industry
- Max
- 4.30%
- Q3
- 3.77%
- Median
- 2.61%
- Q1
- 1.60%
- Min
- -1.64%
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.
LLY
40.70%
Drug Manufacturers - General Industry
- Max
- 40.70%
- Q3
- 28.90%
- Median
- 23.41%
- Q1
- 19.05%
- Min
- 16.13%
An Operating Profit Margin of 40.70% places LLY in the upper quartile for the Drug Manufacturers - General industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | ALHC | LLY |
|---|---|---|
| Return on Equity (TTM) | -81.24% | 76.92% |
| Return on Assets (TTM) | -10.12% | 12.42% |
| Return on Invested Capital (TTM) | -15.02% | 25.72% |
| Net Profit Margin (TTM) | -3.02% | 22.66% |
| Operating Profit Margin (TTM) | -2.19% | 40.70% |
| Gross Profit Margin (TTM) | 11.57% | 81.70% |
Financial Strength
Current Ratio
ALHC
1.69
Medical - Healthcare Plans Industry
- Max
- 1.91
- Q3
- 1.63
- Median
- 1.43
- Q1
- 0.85
- Min
- 0.78
ALHC’s Current Ratio of 1.69 is in the upper quartile for the Medical - Healthcare Plans industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
LLY
1.37
Drug Manufacturers - General Industry
- Max
- 1.67
- Q3
- 1.37
- Median
- 1.26
- Q1
- 0.87
- Min
- 0.39
LLY’s Current Ratio of 1.37 aligns with the median group of the Drug Manufacturers - General industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
ALHC
0.07
Medical - Healthcare Plans Industry
- Max
- 1.06
- Q3
- 0.86
- Median
- 0.75
- Q1
- 0.66
- Min
- 0.66
At 0.07, ALHC’s Debt-to-Equity Ratio is unusually low for the Medical - Healthcare Plans industry. This highlights a conservative capital structure, suggesting the company prioritizes financial stability over aggressive growth funded by debt.
LLY
2.44
Drug Manufacturers - General Industry
- Max
- 2.95
- Q3
- 2.44
- Median
- 0.86
- Q1
- 0.68
- Min
- 0.09
LLY’s Debt-to-Equity Ratio of 2.44 is typical for the Drug Manufacturers - General industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
ALHC
-2.98
Medical - Healthcare Plans Industry
- Max
- 6.23
- Q3
- 6.23
- Median
- 5.19
- Q1
- 4.64
- Min
- 3.18
ALHC has a negative Interest Coverage Ratio of -2.98. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
LLY
23.61
Drug Manufacturers - General Industry
- Max
- 27.46
- Q3
- 14.40
- Median
- 7.80
- Q1
- 4.07
- Min
- 1.67
LLY’s Interest Coverage Ratio of 23.61 is in the upper quartile for the Drug Manufacturers - General industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | ALHC | LLY |
|---|---|---|
| Current Ratio (TTM) | 1.69 | 1.37 |
| Quick Ratio (TTM) | 1.69 | 1.06 |
| Debt-to-Equity Ratio (TTM) | 0.07 | 2.44 |
| Debt-to-Asset Ratio (TTM) | 0.01 | 0.43 |
| Net Debt-to-EBITDA Ratio (TTM) | 10.90 | 2.18 |
| Interest Coverage Ratio (TTM) | -2.98 | 23.61 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ALHC and LLY. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ALHC
0.00%
Medical - Healthcare Plans Industry
- Max
- 3.88%
- Q3
- 1.78%
- Median
- 0.73%
- 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 earnings, though it may be less typical in mature, income-oriented sectors.
LLY
0.72%
Drug Manufacturers - General Industry
- Max
- 8.72%
- Q3
- 4.10%
- Median
- 3.34%
- Q1
- 1.89%
- Min
- 0.00%
LLY’s Dividend Yield of 0.72% is in the lower quartile for the Drug Manufacturers - General industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
Dividend Payout Ratio
ALHC
0.00%
Medical - Healthcare Plans Industry
- Max
- 63.88%
- Q3
- 29.91%
- Median
- 12.57%
- Q1
- 0.00%
- Min
- 0.00%
ALHC has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
LLY
43.74%
Drug Manufacturers - General Industry
- Max
- 266.46%
- Q3
- 78.91%
- Median
- 60.27%
- Q1
- 43.74%
- Min
- 0.00%
LLY’s Dividend Payout Ratio of 43.74% is within the typical range for the Drug Manufacturers - General industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ALHC | LLY |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.72% |
| Dividend Payout Ratio (TTM) | 0.00% | 43.74% |
Valuation
Price-to-Earnings Ratio
ALHC
-28.99
Medical - Healthcare Plans Industry
- Max
- 18.17
- Q3
- 17.32
- Median
- 15.48
- Q1
- 13.55
- Min
- 12.84
ALHC has a negative P/E Ratio of -28.99. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.
LLY
63.17
Drug Manufacturers - General Industry
- Max
- 27.96
- Q3
- 25.84
- Median
- 18.32
- Q1
- 16.65
- Min
- 3.39
At 63.17, LLY’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Drug Manufacturers - General industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Forward P/E to Growth Ratio
ALHC
-0.99
Medical - Healthcare Plans Industry
- Max
- 1.41
- Q3
- 1.09
- Median
- 0.85
- Q1
- 0.79
- Min
- 0.60
ALHC has a negative Forward PEG Ratio of -0.99. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
LLY
2.81
Drug Manufacturers - General Industry
- Max
- 3.10
- Q3
- 3.09
- Median
- 2.72
- Q1
- 2.18
- Min
- 1.02
LLY’s Forward PEG Ratio of 2.81 is within the middle range of its peers in the Drug Manufacturers - General industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
Price-to-Sales Ratio
ALHC
0.89
Medical - Healthcare Plans Industry
- Max
- 0.94
- Q3
- 0.64
- Median
- 0.43
- Q1
- 0.27
- Min
- 0.16
ALHC’s P/S Ratio of 0.89 is in the upper echelon for the Medical - Healthcare Plans industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
LLY
15.10
Drug Manufacturers - General Industry
- Max
- 6.47
- Q3
- 4.47
- Median
- 3.53
- Q1
- 1.96
- Min
- 0.41
With a P/S Ratio of 15.10, LLY trades at a valuation that eclipses even the highest in the Drug Manufacturers - General industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio
ALHC
24.30
Medical - Healthcare Plans Industry
- Max
- 4.08
- Q3
- 3.83
- Median
- 2.63
- Q1
- 1.74
- Min
- 0.96
At 24.30, ALHC’s P/B Ratio is at an extreme premium to the Medical - Healthcare Plans industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
LLY
44.50
Drug Manufacturers - General Industry
- Max
- 7.80
- Q3
- 7.80
- Median
- 5.30
- Q1
- 4.06
- Min
- 1.08
The P/B Ratio is often not a primary valuation metric for the Drug Manufacturers - General industry.
Valuation at a Glance
| Symbol | ALHC | LLY |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -28.99 | 63.17 |
| Forward PEG Ratio (TTM) | -0.99 | 2.81 |
| Price-to-Sales Ratio (P/S, TTM) | 0.89 | 15.10 |
| Price-to-Book Ratio (P/B, TTM) | 24.30 | 44.50 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 140.75 | 1518.61 |
| EV-to-EBITDA (TTM) | -55.82 | 47.64 |
| EV-to-Sales (TTM) | 0.75 | 15.82 |