Critical Analysis: HH&L Acquisition (HHLA) vs. Its Rivals

HH&L Acquisition (NYSE:HHLA – Get Rating) is one of 681 publicly-traded companies in the “Holding & other investment offices” industry, but how does it compare to its rivals? We will compare HH&L Acquisition to related companies based on the strength of its dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.

Analyst Recommendations

This is a summary of current recommendations for HH&L Acquisition and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HH&L Acquisition	0	0	0	0	N/A
HH&L Acquisition Competitors	174	678	956	20	2.45

As a group, “Holding & other investment offices” companies have a potential upside of 74.89%. Given HH&L Acquisition’s rivals higher possible upside, analysts plainly believe HH&L Acquisition has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

53.1% of HH&L Acquisition shares are held by institutional investors. Comparatively, 53.9% of shares of all “Holding & other investment offices” companies are held by institutional investors. 19.2% of shares of all “Holding & other investment offices” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares HH&L Acquisition and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
HH&L Acquisition	N/A	$1.32 million	-17.25
HH&L Acquisition Competitors	$1.23 billion	$71.90 million	-17.47

HH&L Acquisition’s rivals have higher revenue and earnings than HH&L Acquisition. HH&L Acquisition is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares HH&L Acquisition and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HH&L Acquisition	N/A	1.45%	0.32%
HH&L Acquisition Competitors	49.62%	-28.80%	2.69%

Summary

HH&L Acquisition rivals beat HH&L Acquisition on 7 of the 9 factors compared.

HH&L Acquisition Company Profile (Get Rating)

HH&L Acquisition Co. focuses on effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses. It intends to focus on healthcare or healthcare-related companies in Asian markets. The company was incorporated in 2020 and is based in Central, Hong Kong.