P3 Health Partners (NASDAQ:PIII – Get Free Report) and Alignment Healthcare (NASDAQ:ALHC – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.
Analyst Ratings
This is a summary of current recommendations and price targets for P3 Health Partners and Alignment Healthcare, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| P3 Health Partners | 1 | 2 | 1 | 0 | 2.00 |
| Alignment Healthcare | 0 | 5 | 7 | 0 | 2.58 |
P3 Health Partners presently has a consensus target price of $17.00, suggesting a potential upside of 282.88%. Alignment Healthcare has a consensus target price of $16.82, suggesting a potential upside of 107.89%. Given P3 Health Partners’ higher probable upside, analysts plainly believe P3 Health Partners is more favorable than Alignment Healthcare.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| P3 Health Partners | -6.55% | N/A | -16.40% |
| Alignment Healthcare | 0.89% | 20.02% | 3.46% |
Valuation & Earnings
This table compares P3 Health Partners and Alignment Healthcare”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| P3 Health Partners | $1.50 billion | 0.02 | -$147.95 million | ($33.00) | -0.13 |
| Alignment Healthcare | $3.95 billion | 0.42 | -$720,000.00 | $0.19 | 42.58 |
Alignment Healthcare has higher revenue and earnings than P3 Health Partners. P3 Health Partners is trading at a lower price-to-earnings ratio than Alignment Healthcare, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
P3 Health Partners has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500. Comparatively, Alignment Healthcare has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.
Institutional & Insider Ownership
7.7% of P3 Health Partners shares are owned by institutional investors. Comparatively, 86.2% of Alignment Healthcare shares are owned by institutional investors. 10.9% of P3 Health Partners shares are owned by insiders. Comparatively, 5.2% of Alignment Healthcare shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Alignment Healthcare beats P3 Health Partners on 11 of the 14 factors compared between the two stocks.
About P3 Health Partners
P3 Health Partners Inc., a patient-centered and physician-led population health management company, provides superior care services in the United States. It operates clinics and wellness centers. P3 Health Partners Inc. was founded in 2020 and is based in Henderson, Nevada.
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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