Analyzing Alphatec (ATEC) and Its Peers

Alphatec (NASDAQ: ATEC) is one of 104 public companies in the “Surgical & medical instruments” industry, but how does it contrast to its rivals? We will compare Alphatec to similar companies based on the strength of its profitability, dividends, valuation, analyst recommendations, institutional ownership, earnings and risk.

Risk & Volatility

Alphatec has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, Alphatec’s rivals have a beta of 0.80, indicating that their average share price is 20% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Alphatec and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alphatec 0 0 2 0 3.00
Alphatec Competitors 487 1847 3706 110 2.56

Alphatec presently has a consensus price target of $5.50, indicating a potential upside of 66.67%. As a group, “Surgical & medical instruments” companies have a potential upside of 15.02%. Given Alphatec’s stronger consensus rating and higher probable upside, equities analysts clearly believe Alphatec is more favorable than its rivals.

Insider & Institutional Ownership

12.0% of Alphatec shares are held by institutional investors. Comparatively, 48.3% of shares of all “Surgical & medical instruments” companies are held by institutional investors. 23.6% of Alphatec shares are held by company insiders. Comparatively, 16.4% of shares of all “Surgical & medical instruments” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Alphatec $101.74 million -$2.29 million -9.17
Alphatec Competitors $1.54 billion $111.91 million -129.58

Alphatec’s rivals have higher revenue and earnings than Alphatec. Alphatec 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 Alphatec and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alphatec -2.25% N/A -6.31%
Alphatec Competitors -61.96% -46.96% -18.08%

Summary

Alphatec beats its rivals on 9 of the 13 factors compared.

About Alphatec

Alphatec Holdings, Inc., a medical technology company, focuses on the design, development, and promotion of products for the surgical treatment of spine disorders. Its product portfolio and pipeline address the cervical, thoracolumbar, and intervertebral regions of the spine; and cover various spinal disorders and surgical procedures. The company offers MIS products consisting of Battalion Lateral Spacer System and Squadron Lateral Retractor, Illico Minimally Invasive Surgery System, and BridgePoint Spinous Process Fixation System; and fixation products, such as Arsenal Screw System and Zodiac Spinal Fixation Systems. It also provides cervical and cervico-thoracic products, including Trestle Luxe Anterior Cervical Plate System, and Solanas Posterior Cervico/Thoracic Fixation System and Avalon Occipital Plate; and interbody Systems, such as Battalion Universal Spacer System, Novel PEEK and Titanium Spinal Spacers, and Alphatec Solus Locking ALIF Spinal Spacer. In addition, the company offers biologics consisting of AlphaGraft Structural Allograft Spacers, AlphaGraft ProFuse Demineralized Bone Scaffold, Amnioshield Amniotic Tissue Barrier, Alphagraft Demineralized Bone Matrix, and Neocore Osteoconductive Matrix. It sells its products through a network of independent distributors and direct sales representatives in the United States. Alphatec Holdings, Inc. was founded in 1990 and is headquartered in Carlsbad, California.

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