CorVel (NASDAQ:CRVL – Get Free Report) and Alignment Healthcare (NASDAQ:ALHC – Get Free Report) are both healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.
Insider & Institutional Ownership
51.4% of CorVel shares are held by institutional investors. Comparatively, 86.2% of Alignment Healthcare shares are held by institutional investors. 39.7% of CorVel shares are held by company insiders. Comparatively, 5.2% of Alignment Healthcare shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares CorVel and Alignment Healthcare”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CorVel | $958.53 million | 3.96 | $110.34 million | $2.25 | 33.05 |
| Alignment Healthcare | $3.95 billion | 0.43 | -$720,000.00 | $0.19 | 43.38 |
CorVel has higher earnings, but lower revenue than Alignment Healthcare. CorVel is trading at a lower price-to-earnings ratio than Alignment Healthcare, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
CorVel has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Alignment Healthcare has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for CorVel and Alignment Healthcare, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CorVel | 0 | 1 | 0 | 0 | 2.00 |
| Alignment Healthcare | 0 | 4 | 7 | 0 | 2.64 |
Alignment Healthcare has a consensus target price of $23.60, suggesting a potential upside of 186.34%. Given Alignment Healthcare’s stronger consensus rating and higher probable upside, analysts clearly believe Alignment Healthcare is more favorable than CorVel.
Profitability
This table compares CorVel and Alignment Healthcare’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CorVel | 11.72% | 29.92% | 17.82% |
| Alignment Healthcare | 0.89% | 20.02% | 3.46% |
About CorVel
CorVel Corporation provides workers’ compensation, auto, liability, and health solutions. It applies technology, including artificial intelligence, machine learning, and natural language processing to enhance the managing of episodes of care and the related health care costs. The company also offers network solutions services, including automated medical fee auditing, preferred provider management and reimbursement, retrospective utilization review, facility claim review, professional review, pharmacy, directed care, clearinghouse, independent medical examination, and inpatient medical bill review services, as well as Medicare solutions. In addition, it provides a range of patient management services, such as claims management, case management, 24/7 nurse triage, utilization management, vocational rehabilitation, and life care planning, as well as processing of claims for self-insured payors with respect to property and casualty insurance. The company offers solutions to employers, third party administrators, insurance companies, and government agencies to assist them in managing the medical costs and monitoring the quality of care associated with healthcare claims. CorVel Corporation was incorporated in 1987 and is based in Fort Worth, Texas.
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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