WallStSmart

Alignment Healthcare LLC (ALHC)vsCentene Corp (CNC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Centene Corp generates 3839% more annual revenue ($180.30B vs $4.58B). ALHC leads profitability with a 0.9% profit margin vs -2.8%. ALHC earns a higher WallStSmart Score of 60/100 (C).

ALHC

Buy

60

out of 100

Grade: C

Growth: 10.0Profit: 5.0Value: 4.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.99

CNC

Buy

56

out of 100

Grade: C

Growth: 6.7Profit: 3.0Value: 7.7Quality: 6.5
Piotroski: 6/9Altman Z: 2.83
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ALHCUndervalued (+9.4%)

Margin of Safety

+9.4%

Fair Value

$22.51

Current Price

$12.61

$9.90 discount

UndervaluedFair: $22.51Overvalued
CNCUndervalued (+84.8%)

Margin of Safety

+84.8%

Fair Value

$265.86

Current Price

$66.42

$199.44 discount

UndervaluedFair: $265.86Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ALHC2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
31.6%10/10

Revenue surging 31.6% year-over-year

EPS GrowthGrowth
142.9%10/10

Earnings expanding 142.9% YoY

CNC3 strengths · Avg: 8.7/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

PEG RatioValuation
0.818/10

Growing faster than its price suggests

Free Cash FlowQuality
$4.20B8/10

Generating 4.2B in free cash flow

Areas to Watch

ALHC4 concerns · Avg: 3.3/10
Price/BookValuation
9.9x4/10

Trading at 9.9x book value

Profit MarginProfitability
0.9%3/10

0.9% margin — thin

Operating MarginProfitability
3.1%3/10

Operating margin of 3.1%

Debt/EquityHealth
1.253/10

Elevated debt levels

CNC4 concerns · Avg: 2.5/10
Revenue GrowthGrowth
4.6%4/10

4.6% revenue growth

Operating MarginProfitability
3.8%3/10

Operating margin of 3.8%

Return on EquityProfitability
-22.6%2/10

ROE of -22.6% — below average capital efficiency

Profit MarginProfitability
-2.8%1/10

Currently unprofitable

Comparative Analysis Report

WallStSmart Research

Bull Case : ALHC

The strongest argument for ALHC centers on Revenue Growth, EPS Growth. Revenue growth of 31.6% demonstrates continued momentum.

Bull Case : CNC

The strongest argument for CNC centers on Price/Book, PEG Ratio, Free Cash Flow. PEG of 0.81 suggests the stock is reasonably priced for its growth.

Bear Case : ALHC

The primary concerns for ALHC are Price/Book, Profit Margin, Operating Margin. A P/E of 71.3x leaves little room for execution misses. Thin 0.9% margins leave little buffer for downturns.

Bear Case : CNC

The primary concerns for CNC are Revenue Growth, Operating Margin, Return on Equity.

Key Dynamics to Monitor

ALHC profiles as a hypergrowth stock while CNC is a turnaround play — different risk/reward profiles.

ALHC carries more volatility with a beta of 1.11 — expect wider price swings.

ALHC is growing revenue faster at 31.6% — sustainability is the question.

CNC generates stronger free cash flow (4.2B), providing more financial flexibility.

Bottom Line

ALHC scores higher overall (60/100 vs 56/100) and 31.6% revenue growth. CNC offers better value entry with a 84.8% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Alignment Healthcare LLC

HEALTHCARE · HEALTHCARE PLANS · USA

Alignment Healthcare, Inc. provides a consumer-centric platform that provides personalized healthcare to seniors in the United States. The company is headquartered in Orange, California.

Centene Corp

HEALTHCARE · HEALTHCARE PLANS · USA

Centene Corporation is a large publicly traded company and a multi-line managed care enterprise that serves as a major intermediary for both government-sponsored and privately insured health care programs. It is a healthcare insurer that focuses on managed care for uninsured, underinsured, and low-income individuals.

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