Critical Analysis: Alphatec (NASDAQ:ATEC) and Coloplast A/S (OTCMKTS:CLPBY)

Alphatec (NASDAQ:ATEC) and Coloplast A/S (OTCMKTS:CLPBY) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Volatility and Risk

Alphatec has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, Coloplast A/S has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500.

Valuation and Earnings

This table compares Alphatec and Coloplast A/S”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	2.02	-$143.36 million	($0.95)	-10.75
Coloplast A/S	$4.13 billion	3.52	$538.49 million	$0.27	23.93

Coloplast A/S has higher revenue and earnings than Alphatec. Alphatec is trading at a lower price-to-earnings ratio than Coloplast A/S, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

66.4% of Alphatec shares are held by institutional investors. 20.9% of Alphatec shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Alphatec and Coloplast A/S’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alphatec	-18.76%	N/A	-18.18%
Coloplast A/S	14.35%	27.87%	9.07%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Alphatec and Coloplast A/S, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alphatec	1	1	9	1	2.83
Coloplast A/S	1	3	0	0	1.75

Alphatec currently has a consensus target price of $22.82, indicating a potential upside of 123.49%. Given Alphatec’s stronger consensus rating and higher possible upside, research analysts clearly believe Alphatec is more favorable than Coloplast A/S.

Summary

Coloplast A/S beats Alphatec on 8 of the 15 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 Coloplast A/S

Coloplast A/S engages in the development and sale of intimate healthcare products and services in Denmark, the United States, the United Kingdom, France, and internationally. The company operates through Chronic Care, Continence Care, Voice and Respiratory Care, Interventional Urology, and Advanced Wound Care segments. It provides ostomy care products, including SenSura Mio, which provides fit individual body shapes and optimal discretion for various types of ostomies; and SenSura Ostomy care solutions, as well as ostomy accessories under the Brava brand. The company also offers continence care products, such as Conveen Active urine bags; SpeediCath catheters that offer catheterization for both genders; and Peristeen Plus, a transanal irrigation system. In addition, it provides wound care products comprising conforming dressing under the Biatain Silicone brand and hydrocolloid dressing under the Comfeel brand; and skin care products that include cleansers, moisturizers, skin protectants, antifungal products, and hand cleansers, as well as InterDry, a skin fold management solution. Further, the company develops, produces, and markets products for the surgical treatment of urological and gynecological disorders, such as urinary stone diseases, benign prostate hyperplasia, voiding dysfunctions, erectile dysfunction, and urinary incontinence. Additionally, its voice and respiratory care solutions include laryngectomy care products comprising Provox, a voice prosthesis for speaking, HMEs, adhesives, laryngectomy tubes for breathing, devices for speaking hands-free, and accessories, as well as tracheostomy care products under Tracoe brand. The company was founded in 1954 and is headquartered in Humlebæk, Denmark.