ALHC vs. ZBH: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ALHC and ZBH, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ZBH’s market capitalization of 18.53 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 ZBH (beta: 0.72), suggesting ALHC has greater potential for both gains and losses relative to market movements.
| Symbol | ALHC | ZBH |
|---|---|---|
| Company Name | Alignment Healthcare, Inc. | Zimmer Biomet Holdings, Inc. |
| Country | US | US |
| Sector | Healthcare | Healthcare |
| Industry | Medical - Healthcare Plans | Medical - Devices |
| CEO | John E. Kao | Ivan Tornos |
| Price | 13.57 USD | 93.67 USD |
| Market Cap | 2.68 billion USD | 18.53 billion USD |
| Beta | 1.22 | 0.72 |
| Exchange | NASDAQ | NYSE |
| IPO Date | March 26, 2021 | July 25, 2001 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ALHC and ZBH 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.
ZBH
7.31%
Medical - Devices Industry
- Max
- 49.04%
- Q3
- 9.53%
- Median
- -7.46%
- Q1
- -32.83%
- Min
- -82.64%
ZBH’s Return on Equity of 7.31% is on par with the norm for the Medical - Devices 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.
ZBH
5.58%
Medical - Devices Industry
- Max
- 21.88%
- Q3
- 6.63%
- Median
- -1.11%
- Q1
- -21.08%
- Min
- -51.95%
ZBH’s Return on Invested Capital of 5.58% is in line with the norm for the Medical - Devices industry, reflecting a standard level of efficiency in generating profits from its capital base.
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.
ZBH
11.86%
Medical - Devices Industry
- Max
- 44.80%
- Q3
- 9.77%
- Median
- -5.53%
- Q1
- -29.37%
- Min
- -87.68%
A Net Profit Margin of 11.86% places ZBH in the upper quartile for the Medical - Devices 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.
ZBH
17.04%
Medical - Devices Industry
- Max
- 30.13%
- Q3
- 13.12%
- Median
- 3.47%
- Q1
- -24.42%
- Min
- -80.56%
An Operating Profit Margin of 17.04% places ZBH 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.
Profitability at a Glance
| Symbol | ALHC | ZBH |
|---|---|---|
| Return on Equity (TTM) | -81.24% | 7.31% |
| Return on Assets (TTM) | -10.12% | 4.12% |
| Return on Invested Capital (TTM) | -15.02% | 5.58% |
| Net Profit Margin (TTM) | -3.02% | 11.86% |
| Operating Profit Margin (TTM) | -2.19% | 17.04% |
| Gross Profit Margin (TTM) | 11.57% | 71.05% |
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.
ZBH
2.44
Medical - Devices Industry
- Max
- 12.68
- Q3
- 6.30
- Median
- 4.05
- Q1
- 1.85
- Min
- 0.01
ZBH’s Current Ratio of 2.44 aligns with the median group of the Medical - Devices 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.
ZBH
0.58
Medical - Devices Industry
- Max
- 2.34
- Q3
- 1.09
- Median
- 0.37
- Q1
- 0.08
- Min
- 0.00
ZBH’s Debt-to-Equity Ratio of 0.58 is typical for the Medical - Devices 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.
ZBH
5.62
Medical - Devices Industry
- Max
- 18.18
- Q3
- 7.53
- Median
- 0.85
- Q1
- -9.80
- Min
- -33.94
ZBH’s Interest Coverage Ratio of 5.62 is positioned comfortably within the norm for the Medical - Devices industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ALHC | ZBH |
|---|---|---|
| Current Ratio (TTM) | 1.69 | 2.44 |
| Quick Ratio (TTM) | 1.69 | 1.46 |
| Debt-to-Equity Ratio (TTM) | 0.07 | 0.58 |
| Debt-to-Asset Ratio (TTM) | 0.01 | 0.32 |
| Net Debt-to-EBITDA Ratio (TTM) | 10.90 | 2.52 |
| Interest Coverage Ratio (TTM) | -2.98 | 5.62 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ALHC and ZBH. 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.
ZBH
1.02%
Medical - Devices Industry
- Max
- 3.57%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.02%, ZBH offers a more attractive income stream than most of its peers in the Medical - Devices industry, signaling a strong commitment to shareholder returns.
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.
ZBH
21.28%
Medical - Devices Industry
- Max
- 102.12%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ZBH’s Dividend Payout Ratio of 21.28% is in the upper quartile for the Medical - Devices industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | ALHC | ZBH |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.02% |
| Dividend Payout Ratio (TTM) | 0.00% | 21.28% |
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.
ZBH
20.40
Medical - Devices Industry
- Max
- 90.56
- Q3
- 56.92
- Median
- 43.19
- Q1
- 21.79
- Min
- 5.55
In the lower quartile for the Medical - Devices industry, ZBH’s P/E Ratio of 20.40 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
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.
ZBH
2.73
Medical - Devices Industry
- Max
- 6.56
- Q3
- 3.52
- Median
- 2.22
- Q1
- 0.55
- Min
- 0.03
ZBH’s Forward PEG Ratio of 2.73 is within the middle range of its peers in the Medical - Devices 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.
ZBH
2.41
Medical - Devices Industry
- Max
- 15.74
- Q3
- 8.12
- Median
- 3.40
- Q1
- 2.37
- Min
- 0.42
ZBH’s P/S Ratio of 2.41 aligns with the market consensus for the Medical - Devices industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
ZBH
1.50
Medical - Devices Industry
- Max
- 16.65
- Q3
- 8.03
- Median
- 3.73
- Q1
- 1.92
- Min
- 0.65
ZBH’s P/B Ratio of 1.50 is in the lower quartile for the Medical - Devices industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | ALHC | ZBH |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -28.99 | 20.40 |
| Forward PEG Ratio (TTM) | -0.99 | 2.73 |
| Price-to-Sales Ratio (P/S, TTM) | 0.89 | 2.41 |
| Price-to-Book Ratio (P/B, TTM) | 24.30 | 1.50 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 140.75 | 13.74 |
| EV-to-EBITDA (TTM) | -55.82 | 10.59 |
| EV-to-Sales (TTM) | 0.75 | 3.16 |