Contrasting Vapotherm (NYSE:VAPO) and Alphatec (NASDAQ:ATEC)

Vapotherm (NYSE:VAPOGet Rating) and Alphatec (NASDAQ:ATECGet Rating) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Vapotherm and Alphatec, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vapotherm 1 2 1 0 2.00
Alphatec 0 1 4 0 2.80

Vapotherm presently has a consensus price target of $5.63, suggesting a potential upside of 98.76%. Alphatec has a consensus price target of $17.83, suggesting a potential upside of 175.63%. Given Alphatec’s stronger consensus rating and higher possible upside, analysts clearly believe Alphatec is more favorable than Vapotherm.

Volatility and Risk

Vapotherm has a beta of -0.35, indicating that its share price is 135% less volatile than the S&P 500. Comparatively, Alphatec has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500.

Earnings & Valuation

This table compares Vapotherm and Alphatec’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vapotherm $113.29 million 0.66 -$59.80 million ($2.77) -1.02
Alphatec $243.21 million 2.71 -$144.33 million ($1.65) -3.92

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

Profitability

This table compares Vapotherm and Alphatec’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vapotherm -70.49% -97.73% -42.21%
Alphatec -60.83% -147.10% -30.42%

Insider and Institutional Ownership

69.7% of Vapotherm shares are owned by institutional investors. Comparatively, 53.5% of Alphatec shares are owned by institutional investors. 12.8% of Vapotherm shares are owned by insiders. Comparatively, 34.4% of Alphatec shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Alphatec beats Vapotherm on 10 of the 14 factors compared between the two stocks.

About Vapotherm (Get Rating)

Vapotherm, Inc., a medical technology company, focuses on the development and commercialization of proprietary high velocity therapy products used to treat patients of various ages suffering from respiratory distress in the United States and internationally. The company offers precision flow systems, such as Precision Flow Hi-VNI, Precision Flow Plus, Precision Flow Classic, and Precision Flow Heliox that deliver heated, humidified, and oxygenated air at a high velocity to patients through a small-bore nasal interface. It also provides companion products, including Vapotherm Transfer Unit, which allows patients to be transferred between care areas within the hospital or ambulate while on therapy; Q50 compressor, which provides compressed air necessary to run the precision flow systems; aerosol aeroneb adaptor to facilitate delivery of ultrasonic aerosolized medication; aerosol disposable patient circuit that is designed to streamline the provision of continuous and intermittent delivery of aerosol medication; and tracheostomy adaptors. In addition, Vapotherm, Inc. offers ProSoft cannula to provide gentle contact with the skin; and disposable products comprising single-use disposables and nasal interfaces, as well as Oxygen Assist Modules, which helps clinicians maintain oxygen levels within a target range. The company sells its products to hospitals. Vapotherm, Inc. was founded in 1993 and is headquartered in Exeter, New Hampshire.

About Alphatec (Get Rating)

Alphatec Holdings, Inc., a medical technology company, designs, develops, and advances technologies for the surgical treatment of spinal disorders. The company offers SafeOp Neural InformatiX System, an Alpha InformatiX product platform designed to reduce the risk of intraoperative nerve injury; Sigma transforaminal lumbar interbody fusion pedicle-based access system that provides direct visualization of anatomical landmarks; Sigma PTP Access and Patient Positioning System; squadron lateral retractor designed to maximize patient outcomes; Invictus Spinal Fixation System, a thoracolumbar fixation system to treat a range of pathologies; and Invictus MIS SingleStep System that provides minimally invasive pedicle screw placement. It also provides Invictus Modular Fixation Systems designed to increase adaptability with the power of screw modularity; OsseoScrew system to restore the integrity of the spinal column; Arsenal spinal fixation system, a comprehensive thoracolumbar fixation platform to fix a range of degenerative to deformity pathologies and surgical procedures; Aspida Anterior Lumbar Plating System, a fixation system for anterior lumbar interbody fusion; AMP Anti-Migration Plate; OCT Spinal Fixation System; trestle luxe anterior cervical plate system; and Insignia Anterior Cervical Plate System. In addition, the company offers IdentiTi Porous Ti, Transcend Lateral, and Battalion Posterior Interbody Implants; and biologics consisting of Cervical Structural Allograft Spacers, 3D ProFuse Demineralized Bone Scaffold, Neocore Osteoconductive Matrix, Alphagraft Demineralized and Cellular Bone Matrix, and Amnioshield Amniotic Tissue Barrier, as well as EOS imaging products. It sells its products through a network of independent distributors and direct sales representatives in the United States. The company was founded in 1990 and is headquartered in Carlsbad, California.

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