Contrasting Beyond Air (NASDAQ:XAIR) & Align Technology (NASDAQ:ALGN)

Align Technology (NASDAQ:ALGN) and Beyond Air (NASDAQ:XAIR) are both healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, risk and dividends.

Profitability

This table compares Align Technology and Beyond Air’s 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%
Beyond Air	-435.71%	-440.26%	-98.50%

Volatility and Risk

Align Technology has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500. Comparatively, Beyond Air has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500.

Earnings & Valuation

This table compares Align Technology and Beyond Air”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	2.55	$410.35 million	$5.75	25.00
Beyond Air	$7.68 million	0.35	-$33.25 million	($68.40)	-0.04

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

Insider & Institutional Ownership

88.4% of Align Technology shares are held by institutional investors. Comparatively, 31.5% of Beyond Air shares are held by institutional investors. 0.7% of Align Technology shares are held by insiders. Comparatively, 10.0% of Beyond Air shares are held by 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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Align Technology and Beyond Air, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Align Technology	0	6	8	1	2.67
Beyond Air	1	0	3	0	2.50

Align Technology presently has a consensus target price of $206.36, indicating a potential upside of 43.56%. Beyond Air has a consensus target price of $105.00, indicating a potential upside of 3,623.40%. Given Beyond Air’s higher probable upside, analysts plainly believe Beyond Air is more favorable than Align Technology.

Summary

Align Technology beats Beyond Air on 13 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 Beyond Air

Beyond Air, Inc. operates as a commercial-stage medical device and biopharmaceutical company in the United States. The company engages in the development of LungFit platform, a nitric oxide generator and delivery system. It offers LungFit PH for the treatment of persistent pulmonary hypertension of the newborn. The company is also developing LungFit PRO for the treatment of viral lung infections, such as community-acquired viral pneumonia, including COVID-19, as well as bronchiolitis in hospitalized patients; and LungFit GO for the treatment of nontuberculous mycobacteria. The company was formerly known as AIT Therapeutics, Inc. and changed its name to Beyond Air, Inc. in June 2019. Beyond Air, Inc. is based in Garden City, New York.