Alphatec (NASDAQ:ATEC – Get Free Report) and OrthoPediatrics (NASDAQ:KIDS – Get Free Report) are both small-cap healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, valuation, analyst recommendations, profitability, institutional ownership and risk.
Profitability
This table compares Alphatec and OrthoPediatrics’ 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% |
| OrthoPediatrics | -12.83% | -8.10% | -5.46% |
Valuation and Earnings
This table compares Alphatec and OrthoPediatrics”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alphatec | $764.16 million | 1.58 | -$143.36 million | ($0.55) | -14.18 |
| OrthoPediatrics | $264.13 million | 3.18 | -$39.65 million | ($1.43) | -22.53 |
OrthoPediatrics has lower revenue, but higher earnings than Alphatec. OrthoPediatrics is trading at a lower price-to-earnings ratio than Alphatec, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Alphatec has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, OrthoPediatrics has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.
Insider & Institutional Ownership
66.3% of Alphatec shares are owned by institutional investors. Comparatively, 69.1% of OrthoPediatrics shares are owned by institutional investors. 13.5% of Alphatec shares are owned by insiders. Comparatively, 32.5% of OrthoPediatrics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and price targets for Alphatec and OrthoPediatrics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alphatec | 1 | 3 | 11 | 0 | 2.67 |
| OrthoPediatrics | 1 | 1 | 7 | 0 | 2.67 |
Alphatec currently has a consensus target price of $15.63, indicating a potential upside of 100.43%. OrthoPediatrics has a consensus target price of $30.75, indicating a potential downside of 4.56%. Given Alphatec’s higher probable upside, equities analysts clearly believe Alphatec is more favorable than OrthoPediatrics.
Summary
OrthoPediatrics beats Alphatec on 7 of the 13 factors compared between the two stocks.
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.
About OrthoPediatrics
OrthoPediatrics Corp., a medical device company, engages in designing, developing, and marketing anatomically appropriate implants, instruments, and specialized braces for children with orthopedic conditions in the United States and internationally. The company offers pediatric trauma and deformity correction products; scoliosis procedures for the treatment of spinal deformity; and sports medicine and other products. Its products comprise PediLoc, PediPlates, cannulated screws, PediFlex nail, PediNail, PediLoc Tibia, ACL Reconstruction System, Locking Cannulated Blade, Locking Proximal Femur, Spica Tables, RESPONSE Spine, BandLoc, Pediguard, Pediatric Nailing Platform | Femur, Devise Rail, Orthex, The Fassier-Duval Telescopic Intramedullary System, SLIMTM Nail, The GAP Nail, The Free Gliding SCFE Screw System, GIROTM Growth Modulation System, PNP Tibia System, ApiFix Mid-C System, and Mitchell Ponseti. The company serves pediatric orthopedic market, as well as pediatric orthopedic surgeons and caregivers. OrthoPediatrics Corp. was founded in 2006 and is headquartered in Warsaw, Indiana.
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