Merit Medical Systems (NASDAQ:MMSI) versus Alphatec (NASDAQ:ATEC) Critical Survey

Alphatec (NASDAQ:ATEC) and Merit Medical Systems (NASDAQ:MMSI) are both healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Profitability

This table compares Alphatec and Merit Medical Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alphatec	-10.35%	-6,752.24%	-9.77%
Merit Medical Systems	9.94%	14.12%	8.37%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Alphatec and Merit Medical Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alphatec	1	2	11	0	2.71
Merit Medical Systems	0	5	8	0	2.62

Alphatec presently has a consensus price target of $15.37, indicating a potential upside of 117.35%. Merit Medical Systems has a consensus price target of $105.55, indicating a potential upside of 21.83%. Given Alphatec’s stronger consensus rating and higher possible upside, research analysts plainly believe Alphatec is more favorable than Merit Medical Systems.

Risk and Volatility

Alphatec has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Merit Medical Systems has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500.

Valuation and Earnings

This table compares Alphatec and Merit Medical Systems”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alphatec	$764.16 million	1.44	-$143.36 million	($0.55)	-12.85
Merit Medical Systems	$1.61 billion	3.22	$128.49 million	$2.66	32.57

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

Institutional and Insider Ownership

66.3% of Alphatec shares are owned by institutional investors. Comparatively, 99.7% of Merit Medical Systems shares are owned by institutional investors. 13.5% of Alphatec shares are owned by company insiders. Comparatively, 0.7% of Merit Medical Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Merit Medical Systems beats Alphatec on 9 of the 14 factors compared between the two stocks.

About Alphatec

Alphatec Holdings, Inc. is a medical technology company focused on developing and marketing products for spine surgery. Its offerings are intended to support the surgical treatment of spinal disorders and include implants, biologics, instruments and access systems, along with technologies designed to assist surgeons during procedures. The company’s product portfolio includes solutions for several surgical approaches and stages of spine care, including systems for planning, accessing and instrumenting the spine.

About Merit Medical Systems

Merit Medical Systems develops, manufactures and markets medical devices used in diagnostic and interventional procedures. Its products support clinicians in areas including cardiology, radiology, oncology and endoscopy. The company’s portfolio includes devices and accessories for vascular access, diagnostic and therapeutic procedures, drainage, biopsy and embolization. Merit serves hospitals, clinics and other healthcare providers through direct sales and distribution channels. Founded in 1987 and headquartered in South Jordan, Utah, Merit Medical serves customers in the United States and internationally.