Alphatec (NASDAQ: ATEC) and Arch Therapeutics (OTCMKTS:ARTH) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.
Earnings and Valuation
This table compares Alphatec and Arch Therapeutics’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Alphatec||$101.74 million||0.77||-$2.29 million||($0.36)||-8.53|
|Arch Therapeutics||N/A||N/A||-$7.78 million||N/A||N/A|
Alphatec has higher revenue and earnings than Arch Therapeutics.
Insider and Institutional Ownership
18.0% of Alphatec shares are held by institutional investors. Comparatively, 0.0% of Arch Therapeutics shares are held by institutional investors. 44.4% of Alphatec shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Alphatec and Arch Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and price targets for Alphatec and Arch Therapeutics, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Alphatec presently has a consensus price target of $5.50, indicating a potential upside of 79.15%. Arch Therapeutics has a consensus price target of $3.00, indicating a potential upside of 566.67%. Given Arch Therapeutics’ higher probable upside, analysts plainly believe Arch Therapeutics is more favorable than Alphatec.
Risk & Volatility
Alphatec has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, Arch Therapeutics has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.
Alphatec beats Arch Therapeutics on 8 of the 10 factors compared between the two stocks.
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.
About Arch Therapeutics
Arch Therapeutics, Inc., operates as a biotechnology company in the United States. The company develops products based on its technology to stop bleeding and control leaking, as well as provides other advantages during surgery, trauma, and interventional care. Its primary product candidate is AC5 Devices, a synthetic biocompatible peptides that comprises naturally occurring amino acids to achieve hemostasis in minimally invasive and open surgical procedures. The company was founded in 2006 and is based in Framingham, Massachusetts.
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