Align Technology (NASDAQ:ALGN) versus Escalon Medical (OTCMKTS:ESMC) Head to Head Comparison

Align Technology (NASDAQ:ALGN) and Escalon Medical (OTCMKTS:ESMC) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.

Institutional and Insider Ownership

88.4% of Align Technology shares are owned by institutional investors. 0.7% of Align Technology shares are owned by company insiders. Comparatively, 1.9% of Escalon Medical shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Align Technology and Escalon Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Align Technology	11.04%	13.36%	8.32%
Escalon Medical	4.70%	45.60%	12.66%

Risk & Volatility

Align Technology has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500. Comparatively, Escalon Medical has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Align Technology and Escalon Medical, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Align Technology	1	5	8	1	2.60
Escalon Medical	0	0	0	0	0.00

Align Technology presently has a consensus target price of $215.00, suggesting a potential upside of 43.75%. Given Align Technology’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Align Technology is more favorable than Escalon Medical.

Earnings and Valuation

This table compares Align Technology and Escalon Medical”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Align Technology	$4.00 billion	2.71	$421.36 million	$5.93	25.22
Escalon Medical	$11.98 million	0.17	-$130,000.00	$0.05	5.40

Align Technology has higher revenue and earnings than Escalon Medical. Escalon Medical is trading at a lower price-to-earnings ratio than Align Technology, indicating that it is currently the more affordable of the two stocks.

Summary

Align Technology beats Escalon Medical on 12 of the 15 factors compared between the two stocks.

About Align Technology

Align Technology, Inc. designs, manufactures, and markets Invisalign clear aligners, and iTero intraoral scanners and services for orthodontists and general practitioner dentists in the United States, Switzerland, and internationally. The company's Clear Aligner segment offers comprehensive products, including Invisalign comprehensive package that addresses the orthodontic needs of younger patients, such as mandibular advancement, compliance indicators, and compensation for tooth eruption; and Invisalign First Phase I and Invisalign First Comprehensive Phase 2 package for younger patients generally between the ages of six and ten years, which is a mixture of primary/baby and permanent teeth. The segment also provides Invisalign moderate, lite and express packages, and Invisalign go and Invisalign Go Plus; retention products, Invisalign training, and adjusting tools used by dental professionals during the course of treatment; and Invisalign Palatal Expander, a 3D printed orthodontic device; and 3D printing solutions. Its Imaging Systems and CAD/CAM Services segment offers iTero intraoral scanning system, a single hardware platform for restorative or orthodontic procedures; restorative software for general practitioner dentists, prosthodontists, periodontists, and oral surgeons; and orthodontists software for digital records storage, orthodontic diagnosis, and fabrication of printed models and retainers. This segment also provides Invisalign outcome simulator, a chair-side and cloud-based application for the iTero scanner; Invisalign progress assessment tool; Align Oral Health Suite, a digital interface designed to enhance dental consultations; and TimeLapse technology, which allows doctors or practitioners to compare a patient's historic 3D scans to the present-day scan, as well as subscription software, disposables, rentals, leases, pay per scan, and CAD/CAM software solutions. The company was incorporated in 1997 and is headquartered in Tempe, Arizona.

About Escalon Medical

Escalon Medical Corp. engages in the development, manufacturing, marketing, and distribution of medical devices and pharmaceuticals in the area of ophthalmology in the United States and internationally. It offers A-Scan, which provides information about the internal structure of the eye; B-Scan, a diagnostic tool that supplies information to physicians where the media within the eye are cloudy or opaque; UBM, a high frequency/high resolution ultrasound device, which provides detailed information about the anterior segment of the eye; and Pachymeter that measures the thickness of cornea. The company also provides Ispan Intraocular Gases, such as C3F8 and SF6 that are used by vitreoretinal surgeons as a temporary tamponade in detached retina surgery; and AXIS Image management system for managing ophthalmic diagnostic images through the web browser from various devices. In addition, it markets disposable surgical packs used in vitreoretinal surgery, including packs that aid surgeons in the process of injecting and extracting silicone oil. Further, the company engages in the manufacturing and distribution of patented disposable universal gas kit, which delivers the gas from the canister to the patient. It sells its products to medical institutions through independent sales representatives, network of distributors, and internal sales employees. Escalon Medical Corp. was incorporated in 1987 and is headquartered in Wayne, Pennsylvania.