Critical Review: Agilon Health (NYSE:AGL) vs. CorVel (NASDAQ:CRVL)

CorVel (NASDAQ:CRVL) and Agilon Health (NYSE:AGL) are both healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Profitability

This table compares CorVel and Agilon Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CorVel	12.02%	30.20%	18.06%
Agilon Health	-1.45%	-51.97%	-7.15%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for CorVel and Agilon Health, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CorVel	0	1	0	0	2.00
Agilon Health	2	6	6	0	2.29

Agilon Health has a consensus target price of $102.25, indicating a potential downside of 9.18%. Given Agilon Health’s stronger consensus rating and higher possible upside, analysts clearly believe Agilon Health is more favorable than CorVel.

Earnings and Valuation

This table compares CorVel and Agilon Health”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	4.43	$110.34 million	$2.38	34.94
Agilon Health	$5.93 billion	0.32	-$391.35 million	($5.55)	-20.29

CorVel has higher earnings, but lower revenue than Agilon Health. Agilon Health is trading at a lower price-to-earnings ratio than CorVel, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

51.4% of CorVel shares are owned by institutional investors. 39.7% of CorVel shares are owned by company insiders. Comparatively, 2.5% of Agilon Health shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

CorVel has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Agilon Health has a beta of 3.1, suggesting that its share price is 210% more volatile than the S&P 500.

Summary

CorVel beats Agilon Health on 9 of the 14 factors compared between the two stocks.

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 Agilon Health

agilon health, inc. provides healthcare services for seniors through primary care physicians in the communities of the United States. It offers a platform that manages the total healthcare needs of the patients by subscription-like per-member per-month. The company was formerly known as Agilon Health Topco, Inc. and changed its name to agilon health, inc. in March 2021. agilon health, inc. was founded in 2016 and is based in Austin, Texas.