Sanuwave Health (NASDAQ:SNWV) & Alphatec (NASDAQ:ATEC) Head-To-Head Contrast

Sanuwave Health (NASDAQ:SNWV) and Alphatec (NASDAQ:ATEC) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, profitability, earnings, dividends and valuation.

Valuation & Earnings

This table compares Sanuwave Health and Alphatec”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sanuwave Health	$44.05 million	1.10	$11.81 million	$0.24	23.42
Alphatec	$764.16 million	2.16	-$143.36 million	($0.71)	-15.03

Sanuwave Health has higher earnings, but lower revenue than Alphatec. Alphatec is trading at a lower price-to-earnings ratio than Sanuwave Health, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Sanuwave Health has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500. Comparatively, Alphatec has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.

Insider and Institutional Ownership

42.5% of Sanuwave Health shares are owned by institutional investors. Comparatively, 66.3% of Alphatec shares are owned by institutional investors. 14.4% of Sanuwave Health shares are owned by insiders. Comparatively, 13.5% of Alphatec shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Sanuwave Health and Alphatec’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sanuwave Health	32.38%	1,728.10%	39.04%
Alphatec	-13.49%	-6,752.24%	-13.88%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Sanuwave Health and Alphatec, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sanuwave Health	2	0	1	0	1.67
Alphatec	1	1	13	0	2.80

Sanuwave Health currently has a consensus target price of $47.00, indicating a potential upside of 736.30%. Alphatec has a consensus target price of $17.40, indicating a potential upside of 63.07%. Given Sanuwave Health’s higher possible upside, analysts clearly believe Sanuwave Health is more favorable than Alphatec.

Summary

Sanuwave Health beats Alphatec on 9 of the 14 factors compared between the two stocks.

About Sanuwave Health

SANUWAVE Health, Inc., a shock wave technology company, researches, develops, and commercializes noninvasive, high-energy, and acoustic shock waves for regenerative medicine and other applications in the United States and internationally. Its shockwaves are used to produce a biological response resulting in the body healing itself through the repair and regeneration of tissue, and musculoskeletal and vascular structures. The company’s lead regenerative product is the dermaPACE device for treating diabetic foot ulcers. Its portfolio of healthcare products and product candidates activate biologic signaling and angiogenic responses, including new vascularization and microcirculatory improvement, which helps to restore the body’s normal healing processes and regeneration. The company also focuses on applying its Pulsed Acoustic Cellular Expression technology in wound healing, orthopedic, plastic/cosmetic, and cardiac conditions. In addition, it offers UltraMIST, non-contact and non-thermal ultrasound therapy device used to treat diabetic foot ulcers, pressure ulcers, venous leg ulcers, deep tissue pressure injuries, and surgical wounds; and orthoPACE system to treat tendinopathies and acute and nonunion fractures. The company was founded in 2005 and is headquartered in Suwanee, Georgia.

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.