Alphatec (NASDAQ:ATEC) and Merit Medical Systems (NASDAQ:MMSI) Critical Comparison

Merit Medical Systems (NASDAQ:MMSI) and Alphatec (NASDAQ:ATEC) are both healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Profitability

This table compares Merit Medical Systems and Alphatec’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Merit Medical Systems	9.94%	14.12%	8.37%
Alphatec	-10.35%	-6,752.24%	-9.77%

Volatility and Risk

Merit Medical Systems has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, Alphatec has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.

Insider & Institutional Ownership

99.7% of Merit Medical Systems shares are owned by institutional investors. Comparatively, 66.3% of Alphatec shares are owned by institutional investors. 0.7% of Merit Medical Systems shares are owned by company insiders. Comparatively, 13.5% of Alphatec shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Merit Medical Systems and Alphatec, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Merit Medical Systems	0	5	8	0	2.62
Alphatec	1	2	11	0	2.71

Merit Medical Systems presently has a consensus price target of $105.55, indicating a potential upside of 21.84%. Alphatec has a consensus price target of $15.63, indicating a potential upside of 121.28%. Given Alphatec’s stronger consensus rating and higher possible upside, analysts clearly believe Alphatec is more favorable than Merit Medical Systems.

Valuation & Earnings

This table compares Merit Medical Systems and Alphatec”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Merit Medical Systems	$1.52 billion	3.42	$128.49 million	$2.66	32.57
Alphatec	$839.72 million	1.31	-$143.36 million	($0.55)	-12.85

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

Summary

Merit Medical Systems beats Alphatec on 9 of the 14 factors compared between the two stocks.

About Merit Medical Systems

Merit Medical Systems develops, manufactures and markets medical devices used in diagnostic and interventional procedures. Its products support clinicians in areas including cardiology, radiology, oncology and endoscopy. The company’s portfolio includes devices and accessories for vascular access, diagnostic and therapeutic procedures, drainage, biopsy and embolization. Merit serves hospitals, clinics and other healthcare providers through direct sales and distribution channels. Founded in 1987 and headquartered in South Jordan, Utah, Merit Medical serves customers in the United States and internationally.

About Alphatec

Alphatec Holdings, Inc. is a medical technology company focused on developing and marketing products for spine surgery. Its offerings are intended to support the surgical treatment of spinal disorders and include implants, biologics, instruments and access systems, along with technologies designed to assist surgeons during procedures. The company’s product portfolio includes solutions for several surgical approaches and stages of spine care, including systems for planning, accessing and instrumenting the spine.