NeueHealth (NYSE:NEUE – Get Free Report) and Alignment Healthcare (NASDAQ:ALHC – Get Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.
Risk and Volatility
NeueHealth has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Alignment Healthcare has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.
Valuation & Earnings
This table compares NeueHealth and Alignment Healthcare’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NeueHealth | $1.16 billion | 0.04 | -$1.15 billion | ($151.20) | -0.04 |
| Alignment Healthcare | $1.82 billion | 0.54 | -$148.02 million | ($0.79) | -6.58 |
Institutional and Insider Ownership
63.9% of NeueHealth shares are owned by institutional investors. Comparatively, 86.2% of Alignment Healthcare shares are owned by institutional investors. 64.3% of NeueHealth shares are owned by company insiders. Comparatively, 6.3% of Alignment Healthcare shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares NeueHealth and Alignment Healthcare’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NeueHealth | -71.23% | N/A | -1.21% |
| Alignment Healthcare | -8.12% | -75.64% | -20.36% |
Analyst Ratings
This is a breakdown of recent ratings and price targets for NeueHealth and Alignment Healthcare, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NeueHealth | 0 | 1 | 0 | 0 | 2.00 |
| Alignment Healthcare | 1 | 4 | 3 | 1 | 2.44 |
NeueHealth presently has a consensus target price of $8.00, indicating a potential upside of 37.46%. Alignment Healthcare has a consensus target price of $9.38, indicating a potential upside of 80.29%. Given Alignment Healthcare’s stronger consensus rating and higher possible upside, analysts plainly believe Alignment Healthcare is more favorable than NeueHealth.
Summary
Alignment Healthcare beats NeueHealth on 11 of the 15 factors compared between the two stocks.
About NeueHealth
NeueHealth, Inc., a healthcare company, provides various healthcare services for health consumers, providers, and payors in the United States. It operates through two segments: NeueCare and NeueSolutions. The NeueCare segment delivers healthcare services to ACA marketplace, medicare, and medicaid through owned and affiliated clinics. It operates risk-bearing clinics under the Centrum Health, AssociatesMD, and Premier Medical Associates brand names. The company also offers integrated system care solution, such as embedded pharmacy, laboratory, radiology, and population health focused specialty services; and chronic care management, transitions of care, and referral management services. The NeueSolutions segment enables providers and medical groups to succeed in performance-based arrangements; and participates in the centers for healthcare access to medicare beneficiaries. The company was formerly known as Bright Health Group, Inc. and changed its name to NeueHealth, Inc. in January 2024. NeueHealth, Inc. was incorporated in 2015 and is headquartered in Doral, Florida.
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.
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