Alphatec (NASDAQ:ATEC – Get Free Report) and PAVmed (NASDAQ:PAVM – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.
Analyst Recommendations
This is a summary of recent ratings and price targets for Alphatec and PAVmed, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alphatec | 0 | 0 | 8 | 0 | 3.00 |
| PAVmed | 0 | 1 | 0 | 1 | 3.00 |
Alphatec currently has a consensus price target of $21.75, suggesting a potential upside of 117.94%. PAVmed has a consensus price target of $21.00, suggesting a potential upside of 2,866.10%. Given PAVmed’s higher probable upside, analysts clearly believe PAVmed is more favorable than Alphatec.
Risk and Volatility
Insider and Institutional Ownership
66.3% of Alphatec shares are owned by institutional investors. Comparatively, 19.9% of PAVmed shares are owned by institutional investors. 22.8% of Alphatec shares are owned by insiders. Comparatively, 12.6% of PAVmed shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Alphatec and PAVmed’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alphatec | -37.45% | -1,767.81% | -26.63% |
| PAVmed | -2,037.67% | N/A | -99.19% |
Earnings and Valuation
This table compares Alphatec and PAVmed’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alphatec | $511.63 million | 2.73 | -$186.64 million | ($1.49) | -6.70 |
| PAVmed | $2.45 million | 2.73 | -$64.18 million | ($9.10) | -0.08 |
PAVmed has lower revenue, but higher earnings than Alphatec. Alphatec is trading at a lower price-to-earnings ratio than PAVmed, indicating that it is currently the more affordable of the two stocks.
Summary
Alphatec beats PAVmed on 9 of the 14 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 PAVmed
PAVmed Inc. focuses on acquiring, developing, and commercializing novel products that target unmet needs in the United States. The company's lead products include CarpX, a patented, single-use, disposable, and minimally invasive surgical device for use in the treatment of carpal tunnel syndrome; EsoCheck Esophageal Cell Collection Device, which consists of diagnostic test that serves as a testing tool for preventing esophageal adenocarcinoma deaths, through early detection of esophageal precancer in at-risk gastroesophageal reflux disease, including chronic heartburn and acid reflux or simply reflux in patients; and EsoGuard, a bisulfite-converted next-generation sequencing DNA assay performed on surface esophageal cells collected with EsoCheck. Its product pipeline also comprises EsoCure EsoCure Esophageal Ablation Device for treating dysplastic BE; PortIO, an implantable intraosseous vascular access device; and Veris cancer care platform. The company was formerly known as PAXmed Inc. and changed its name to PAVmed Inc. in April 2015. PAVmed Inc. was incorporated in 2014 and is headquartered in New York, New York.
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