ALHC vs. NVO: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ALHC and NVO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
NVO’s market capitalization of 306.26 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 NVO (beta: 0.22), suggesting ALHC has greater potential for both gains and losses relative to market movements.
NVO is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. ALHC, on the other hand, is a domestic entity.
| Symbol | ALHC | NVO |
|---|---|---|
| Company Name | Alignment Healthcare, Inc. | Novo Nordisk A/S |
| Country | US | DK |
| Sector | Healthcare | Healthcare |
| Industry | Medical - Healthcare Plans | Drug Manufacturers - General |
| CEO | John E. Kao | Lars Fruergaard Jorgensen |
| Price | 13.57 USD | 69.17 USD |
| Market Cap | 2.68 billion USD | 306.26 billion USD |
| Beta | 1.22 | 0.22 |
| Exchange | NASDAQ | NYSE |
| IPO Date | March 26, 2021 | April 30, 1981 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of ALHC and NVO 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.
NVO
81.24%
Drug Manufacturers - General Industry
- Max
- 95.59%
- Q3
- 76.92%
- Median
- 30.71%
- Q1
- 8.97%
- Min
- -14.85%
In the upper quartile for the Drug Manufacturers - General industry, NVO’s Return on Equity of 81.24% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
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.
NVO
38.75%
Drug Manufacturers - General Industry
- Max
- 25.72%
- Q3
- 17.89%
- Median
- 11.47%
- Q1
- 9.39%
- Min
- 2.87%
NVO’s Return on Invested Capital of 38.75% is exceptionally high, placing it well beyond the typical range for the Drug Manufacturers - General industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.
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.
NVO
34.51%
Drug Manufacturers - General Industry
- Max
- 34.51%
- Q3
- 23.04%
- Median
- 14.73%
- Q1
- 11.78%
- Min
- 2.18%
A Net Profit Margin of 34.51% places NVO in the upper quartile for the Drug Manufacturers - General industry, signifying strong profitability and more effective cost management than most of its peers.
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.
NVO
44.53%
Drug Manufacturers - General Industry
- Max
- 40.70%
- Q3
- 28.90%
- Median
- 23.41%
- Q1
- 19.05%
- Min
- 16.13%
NVO’s Operating Profit Margin of 44.53% is exceptionally high, placing it well above the typical range for the Drug Manufacturers - General industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
Profitability at a Glance
| Symbol | ALHC | NVO |
|---|---|---|
| Return on Equity (TTM) | -81.24% | 81.24% |
| Return on Assets (TTM) | -10.12% | 21.39% |
| Return on Invested Capital (TTM) | -15.02% | 38.75% |
| Net Profit Margin (TTM) | -3.02% | 34.51% |
| Operating Profit Margin (TTM) | -2.19% | 44.53% |
| Gross Profit Margin (TTM) | 11.57% | 84.33% |
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.
NVO
0.74
Drug Manufacturers - General Industry
- Max
- 1.67
- Q3
- 1.37
- Median
- 1.26
- Q1
- 0.87
- Min
- 0.39
NVO’s Current Ratio of 0.74 falls into the lower quartile for the Drug Manufacturers - General industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
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.
NVO
0.86
Drug Manufacturers - General Industry
- Max
- 2.95
- Q3
- 2.44
- Median
- 0.86
- Q1
- 0.68
- Min
- 0.09
NVO’s Debt-to-Equity Ratio of 0.86 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.
NVO
17.84
Drug Manufacturers - General Industry
- Max
- 27.46
- Q3
- 14.40
- Median
- 7.80
- Q1
- 4.07
- Min
- 1.67
NVO’s Interest Coverage Ratio of 17.84 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 | NVO |
|---|---|---|
| Current Ratio (TTM) | 1.69 | 0.74 |
| Quick Ratio (TTM) | 1.69 | 0.56 |
| Debt-to-Equity Ratio (TTM) | 0.07 | 0.86 |
| Debt-to-Asset Ratio (TTM) | 0.01 | 0.24 |
| Net Debt-to-EBITDA Ratio (TTM) | 10.90 | 0.50 |
| Interest Coverage Ratio (TTM) | -2.98 | 17.84 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ALHC and NVO. 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.
NVO
2.53%
Drug Manufacturers - General Industry
- Max
- 8.72%
- Q3
- 4.10%
- Median
- 3.34%
- Q1
- 1.89%
- Min
- 0.00%
NVO’s Dividend Yield of 2.53% is consistent with its peers in the Drug Manufacturers - General industry, providing a dividend return that is standard for its sector.
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.
NVO
48.61%
Drug Manufacturers - General Industry
- Max
- 266.46%
- Q3
- 78.91%
- Median
- 60.27%
- Q1
- 43.74%
- Min
- 0.00%
NVO’s Dividend Payout Ratio of 48.61% 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 | NVO |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.53% |
| Dividend Payout Ratio (TTM) | 0.00% | 48.61% |
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.
NVO
19.15
Drug Manufacturers - General Industry
- Max
- 27.96
- Q3
- 25.84
- Median
- 18.32
- Q1
- 16.65
- Min
- 3.39
NVO’s P/E Ratio of 19.15 is within the middle range for the Drug Manufacturers - General industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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.
NVO
1.46
Drug Manufacturers - General Industry
- Max
- 3.10
- Q3
- 3.09
- Median
- 2.72
- Q1
- 2.18
- Min
- 1.02
In the lower quartile for the Drug Manufacturers - General industry, NVO’s Forward PEG Ratio of 1.46 is a positive indicator. It suggests that the stock may be attractively valued relative to its expected earnings growth.
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.
NVO
6.68
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 6.68, NVO 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.
NVO
14.46
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 | NVO |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -28.99 | 19.15 |
| Forward PEG Ratio (TTM) | -0.99 | 1.46 |
| Price-to-Sales Ratio (P/S, TTM) | 0.89 | 6.68 |
| Price-to-Book Ratio (P/B, TTM) | 24.30 | 14.46 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 140.75 | 27.08 |
| EV-to-EBITDA (TTM) | -55.82 | 13.08 |
| EV-to-Sales (TTM) | 0.75 | 6.94 |