Comparing Align Technology (NASDAQ:ALGN) and Glaukos (NYSE:GKOS)

Align Technology (NASDAQ:ALGN) and Glaukos (NYSE:GKOS) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations for Align Technology and Glaukos, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Align Technology	0	6	8	1	2.67
Glaukos	1	1	13	0	2.80

Align Technology presently has a consensus price target of $206.36, suggesting a potential upside of 40.59%. Glaukos has a consensus price target of $180.54, suggesting a potential upside of 16.82%. Given Align Technology’s higher possible upside, analysts clearly believe Align Technology is more favorable than Glaukos.

Volatility and Risk

Align Technology has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500. Comparatively, Glaukos has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.

Insider & Institutional Ownership

88.4% of Align Technology shares are owned by institutional investors. Comparatively, 99.0% of Glaukos shares are owned by institutional investors. 0.7% of Align Technology shares are owned by insiders. Comparatively, 5.9% of Glaukos shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Align Technology	$4.03 billion	2.61	$410.35 million	$5.75	25.53
Glaukos	$612.84 million	14.87	-$187.69 million	($3.25)	-47.55

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

Profitability

This table compares Align Technology and Glaukos’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Align Technology	9.99%	15.86%	10.32%
Glaukos	-30.68%	-6.37%	-4.78%

Summary

Align Technology beats Glaukos on 10 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 Glaukos

Glaukos Corporation, an ophthalmic pharmaceutical and medical technology company, focuses on the development of novel therapies for the treatment of glaucoma, corneal disorders, and retinal diseases. It offers iStent and iStent inject W micro-bypass stents that enhance aqueous humor outflow inserted in cataract surgery to treat mild-to-moderate open-angle glaucoma. The company's product pipeline includes iStent Infinite indicated for use in the treatment of patients with glaucoma uncontrolled by prior medical and surgical therapy; and iDose TR, an intracameral procedural pharmaceutical therapy indicated for the reduction of intraocular pressure in patients with open-angle glaucoma or ocular hypertension. The company markets its products through direct sales organization, as well as through distributors in the United States and internationally. Glaukos Corporation was incorporated in 1998 and is headquartered in Aliso Viejo, California.