Critical Contrast: Alphatec (ATEC) vs. Its Competitors

Alphatec (NASDAQ:ATEC) is one of 511 public companies in the “Healthcare Equipment & Supplies” industry, but how does it compare to its peers? We will compare Alphatec to similar companies based on the strength of its institutional ownership, profitability, valuation, dividends, analyst recommendations, earnings and risk.

Earnings & Valuation

This table compares Alphatec and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Alphatec	$839.72 million	-$143.36 million	-13.34
Alphatec Competitors	$1.90 billion	$137.77 million	10.94

Alphatec’s peers have higher revenue and earnings than Alphatec. Alphatec is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

66.3% of Alphatec shares are owned by institutional investors. Comparatively, 40.5% of shares of all “Healthcare Equipment & Supplies” companies are owned by institutional investors. 13.5% of Alphatec shares are owned by insiders. Comparatively, 14.8% of shares of all “Healthcare Equipment & Supplies” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Alphatec has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Alphatec’s peers have a beta of 2.55, suggesting that their average share price is 155% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Alphatec and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alphatec	1	2	12	0	2.73
Alphatec Competitors	4262	10490	18226	825	2.46

Alphatec presently has a consensus target price of $16.13, indicating a potential upside of 119.95%. As a group, “Healthcare Equipment & Supplies” companies have a potential upside of 22.62%. Given Alphatec’s stronger consensus rating and higher possible upside, research analysts plainly believe Alphatec is more favorable than its peers.

Profitability

This table compares Alphatec and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alphatec	-13.49%	-6,752.24%	-13.88%
Alphatec Competitors	-278.38%	-150.31%	-21.96%

Summary

Alphatec peers beat Alphatec on 7 of the 13 factors compared.

About Alphatec

Alphatec Holdings, Inc., a medical technology company, designs, develops, and advances technologies for the surgical treatment of spinal disorders in the United States and internationally. It manufactures and sells implants and instruments through third-party suppliers. The company offers Alpha InformatiX product platform, including EOS imaging system that provides full-body imaging; VEA alignment mobile application, which leverages EOS technology to more quickly quantify alignment parameters on a mobile device; SafeOp Neural InformatiX System that automates electromyographic and somatosensory evoked potential monitoring; and Valence, an intra-operative system that integrates navigation and robotics into spine procedures, as well as Sigma Prone TransPsoas (PTP) Access and PTP Patient Positioning Systems. It also provides split-blade retractors; Sigma-ALIF Access System, a procedure-specific access system; spinal implants and fixation systems comprising NanoTec surface modifications, Calibrate PSX, and Invictus, as well as various standalone implants for height restoration and stabilization. In addition, the company provides biologics comprising 3D ProFuse Osteoconductive Bioscaffold for ease of handling and better endplate-to-endplate contact; AlphaGRAFT Demineralized Bone Matrix (DBM) comprising demineralized human tissues; AlphaGRAFT DBM Fibers comprising demineralized fibers; AlphaGRAFT Cellular Bone Matrix (CBM), a growth factor-enriched cellular bone matrix; AlphaGRAFT CBM that is delivered in granular, fiber, or structural form; BioCORE Moldable Bioactive Graft, a synthetic mineral-collagen composite matrix that can be molded to fit the bone defect; and Amnioshield Amniotic Tissue Barrier, an allograft for spinal surgical barrier applications. The company sells its products through a network of independent sales agents and direct sales representatives. Alphatec Holdings, Inc. was founded in 1990 and is headquartered in Carlsbad, California.