Align Technology (NASDAQ: ALGN) is one of 84 public companies in the “Medical Equipment, Supplies & Distribution” industry, but how does it contrast to its rivals? We will compare Align Technology to related businesses based on the strength of its dividends, risk, analyst recommendations, institutional ownership, earnings, valuation and profitability.

Volatility and Risk

Align Technology has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500. Comparatively, Align Technology’s rivals have a beta of 1.06, meaning that their average share price is 6% more volatile than the S&P 500.

Earnings and Valuation

This table compares Align Technology and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Align Technology $1.24 billion $306.55 million 66.03
Align Technology Competitors $827.23 million $159.49 million 36.04

Align Technology has higher revenue and earnings than its rivals. Align Technology 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 Align Technology and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Align Technology 19.18% 23.87% 16.93%
Align Technology Competitors -129.74% -38.44% -10.69%

Institutional & Insider Ownership

81.6% of Align Technology shares are owned by institutional investors. Comparatively, 63.1% of shares of all “Medical Equipment, Supplies & Distribution” companies are owned by institutional investors. 1.6% of Align Technology shares are owned by company insiders. Comparatively, 13.0% of shares of all “Medical Equipment, Supplies & Distribution” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for Align Technology and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Align Technology 0 0 10 0 3.00
Align Technology Competitors 171 1126 2464 89 2.64

Align Technology currently has a consensus price target of $193.20, indicating a potential upside of 0.20%. As a group, “Medical Equipment, Supplies & Distribution” companies have a potential upside of 11.05%. Given Align Technology’s rivals higher possible upside, analysts clearly believe Align Technology has less favorable growth aspects than its rivals.

Summary

Align Technology beats its rivals on 10 of the 13 factors compared.

Align Technology Company Profile

Align Technology, Inc. designs, manufactures and markets a system of clear aligner therapy, intra-oral scanners and computer-aided design/computer-aided manufacturing (CAD/CAM) digital services used in dentistry, orthodontics and dental records storage. The Company operates through two segments: Clear Aligner segment and Scanner and Services (Scanner) segment. The Clear Aligner segment consists of its Invisalign System, which includes Invisalign Full, Teen and Assist (Comprehensive Products), Express/Lite (Non-Comprehensive Products) and Vivera Retainers, along with its training and ancillary products for treating malocclusion (Non-Case). The Scanner segment consists of intra-oral scanning systems and other services available with the intra-oral scanners that provide digital alternatives to the traditional cast models. The Scanner segment includes its iTero scanner and OrthoCAD services.

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