Head to Head Comparison: Alphatec (NASDAQ:ATEC) vs. Treace Medical Concepts (NASDAQ:TMCI)

Alphatec (NASDAQ:ATEC) and Treace Medical Concepts (NASDAQ:TMCI) are both small-cap healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, dividends, earnings and valuation.

Institutional and Insider Ownership

66.3% of Alphatec shares are owned by institutional investors. Comparatively, 84.1% of Treace Medical Concepts shares are owned by institutional investors. 13.5% of Alphatec shares are owned by company insiders. Comparatively, 23.4% of Treace Medical Concepts shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Alphatec has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Treace Medical Concepts has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500.

Profitability

This table compares Alphatec and Treace Medical Concepts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alphatec	-13.49%	-6,752.24%	-13.88%
Treace Medical Concepts	-28.99%	-71.37%	-30.49%

Analyst Recommendations

This is a summary of recent ratings and target prices for Alphatec and Treace Medical Concepts, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alphatec	1	1	13	0	2.80
Treace Medical Concepts	2	4	1	0	1.86

Alphatec presently has a consensus target price of $17.40, suggesting a potential upside of 68.12%. Treace Medical Concepts has a consensus target price of $5.17, suggesting a potential upside of 33.25%. Given Alphatec’s stronger consensus rating and higher probable upside, analysts plainly believe Alphatec is more favorable than Treace Medical Concepts.

Valuation & Earnings

This table compares Alphatec and Treace Medical Concepts”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alphatec	$764.16 million	2.09	-$143.36 million	($0.71)	-14.58
Treace Medical Concepts	$212.69 million	1.19	-$59.00 million	($0.93)	-4.17

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

Summary

Alphatec beats Treace Medical Concepts on 8 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 Treace Medical Concepts

Treace Medical Concepts, Inc., a medical technology company, designs, manufactures, and markets medical devices in the United States. The company offers Lapiplasty 3D bunion correction system that combines instruments, implants, and surgical methods designed to surgically correct three planes of the bunion deformity. It also provides Lapiplasty mini-incision system designed to allow the Lapiplasty procedure to be performed through a 3.5cm incision. In addition, the company offers Adductoplasty system designed for reproducible realignment, stabilization, and fusion of the midfoot. Treace Medical Concepts, Inc. was founded in 2013 and is headquartered in Ponte Vedra, Florida.