Option Care Health (NASDAQ:OPCH – 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 businesses based on the strength of their valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.
Risk and Volatility
Option Care Health has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, Alignment Healthcare has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.
Profitability
This table compares Option Care Health and Alignment Healthcare’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Option Care Health | 3.68% | 18.74% | 7.25% |
| Alignment Healthcare | 0.89% | 20.02% | 3.46% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Option Care Health | 0 | 7 | 7 | 0 | 2.50 |
| Alignment Healthcare | 0 | 4 | 7 | 0 | 2.64 |
Option Care Health currently has a consensus price target of $29.92, suggesting a potential upside of 25.20%. Alignment Healthcare has a consensus price target of $23.60, suggesting a potential upside of 195.37%. Given Alignment Healthcare’s stronger consensus rating and higher probable upside, analysts clearly believe Alignment Healthcare is more favorable than Option Care Health.
Insider and Institutional Ownership
98.0% of Option Care Health shares are held by institutional investors. Comparatively, 86.2% of Alignment Healthcare shares are held by institutional investors. 1.7% of Option Care Health 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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Option Care Health and Alignment Healthcare”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Option Care Health | $5.65 billion | 0.63 | $207.59 million | $1.33 | 17.97 |
| Alignment Healthcare | $3.95 billion | 0.42 | -$720,000.00 | $0.19 | 42.05 |
Option Care Health has higher revenue and earnings than Alignment Healthcare. Option Care Health is trading at a lower price-to-earnings ratio than Alignment Healthcare, indicating that it is currently the more affordable of the two stocks.
Summary
Option Care Health beats Alignment Healthcare on 7 of the 13 factors compared between the two stocks.
About Option Care Health
Option Care Health, Inc. offers home and alternate site infusion services in the United States. The company provides anti-infective therapies; home infusion services to treat heart failures; home parenteral nutrition and enteral nutrition support services for numerous acute and chronic conditions, such as stroke, cancer, and gastrointestinal diseases; immunoglobulin infusion therapies for the treatment of immune deficiencies; and treatments for chronic inflammatory disorders, including crohn’s disease, plaque psoriasis, psoriatic arthritis, rheumatoid arthritis, ulcerative colitis, and other chronic inflammatory disorders. It also offers treatments to manage the progression of neurological disorders, such as multiple sclerosis, duchenne muscular dystrophy, and other neurological disorder; infusion therapies for bleeding disorders, such as hemophilia and von Willebrand diseases; therapies for women with high-risk pregnancies; and other infusion therapies to treat various conditions, including pain management, chemotherapy, and respiratory medications, as well as nursing services. The company markets its services through patient referrals, including physicians, hospital discharge planners, hospital personnel, health maintenance organizations, and preferred provider organizations. Option Care Health, Inc. is headquartered in Bannockburn, Illinois.
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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