Alphatec (ATEC) and Its Competitors Critical Review

Alphatec (NASDAQ:ATEC) is one of 511 public companies in the “Healthcare Equipment & Supplies” industry, but how does it contrast to its rivals? We will compare Alphatec to related businesses based on the strength of its valuation, institutional ownership, analyst recommendations, earnings, profitability, risk and dividends.

Risk and Volatility

Alphatec has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, Alphatec’s rivals have a beta of 2.57, indicating that their average stock price is 157% more volatile than the S&P 500.

Profitability

This table compares Alphatec and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alphatec	-13.49%	-6,752.24%	-13.88%
Alphatec Competitors	-278.47%	-150.38%	-22.01%

Analyst Ratings

This is a breakdown of current ratings and price targets for Alphatec and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alphatec	1	1	13	0	2.80
Alphatec Competitors	4237	10433	18122	818	2.46

Alphatec presently has a consensus price target of $17.40, indicating a potential upside of 60.59%. As a group, “Healthcare Equipment & Supplies” companies have a potential upside of 24.87%. Given Alphatec’s stronger consensus rating and higher probable upside, analysts clearly believe Alphatec is more favorable than its rivals.

Institutional & Insider Ownership

66.3% of Alphatec shares are owned by institutional investors. Comparatively, 40.6% of shares of all “Healthcare Equipment & Supplies” companies are owned by institutional investors. 13.5% of Alphatec shares are owned by company insiders. Comparatively, 14.9% of shares of all “Healthcare Equipment & Supplies” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Alphatec and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Alphatec	$764.16 million	-$143.36 million	-15.26
Alphatec Competitors	$1.89 billion	$138.79 million	11.28

Alphatec’s rivals have higher revenue and earnings than Alphatec. Alphatec is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Alphatec rivals beat Alphatec on 7 of the 13 factors compared.

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.