Varex Imaging (NASDAQ: VREX) and Alphatec Holdings (NASDAQ:ATEC) 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.

Insider and Institutional Ownership

91.7% of Varex Imaging shares are held by institutional investors. Comparatively, 20.6% of Alphatec Holdings shares are held by institutional investors. 23.6% of Alphatec Holdings 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.

Valuation & Earnings

This table compares Varex Imaging and Alphatec Holdings’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Varex Imaging $654.50 million 1.99 $115.80 million N/A N/A
Alphatec Holdings $106.16 million 0.32 -$2.79 million ($3.01) -1.02

Varex Imaging has higher revenue and earnings than Alphatec Holdings.

Analyst Ratings

This is a summary of current ratings and price targets for Varex Imaging and Alphatec Holdings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Varex Imaging 1 0 1 0 2.00
Alphatec Holdings 0 0 1 0 3.00

Varex Imaging presently has a consensus price target of $33.50, indicating a potential downside of 3.15%. Alphatec Holdings has a consensus price target of $4.00, indicating a potential upside of 30.29%. Given Alphatec Holdings’ stronger consensus rating and higher probable upside, analysts plainly believe Alphatec Holdings is more favorable than Varex Imaging.

Profitability

This table compares Varex Imaging and Alphatec Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Varex Imaging N/A N/A N/A
Alphatec Holdings -25.13% N/A -31.74%

Summary

Varex Imaging beats Alphatec Holdings on 6 of the 9 factors compared between the two stocks.

Varex Imaging Company Profile

Varex Imaging Corporation is a supplier of medical X-ray tubes and image processing solutions. The Company’s segments include Medical and Industrial. The X-ray imaging system manufacturers use the Company’s components for medical imaging, cargo screening and border security, to detect, diagnose and protect. The Medical business segment designs, manufactures, sells and services X-ray imaging components for use in a range of applications, including radiographic or fluoroscopic imaging, mammography, special procedures, computed tomography, radiation therapy and computer-aided detection. The Industrial business segment designs, manufactures, sells and services products for use in security and industrial inspection applications, such as cargo screening at ports and borders and non-destructive examination in a range of applications.

Alphatec Holdings Company Profile

Alphatec Holdings, Inc. is a medical technology company. The Company through its subsidiary, Alphatec Spine, Inc. and its subsidiaries, designs, develops, manufactures and markets products for the surgical treatment of spine disorders. Its product portfolio and pipeline addresses the cervical, thoracolumbar and intervertebral regions of the spine and covers a range of spinal disorders and surgical procedures. Its products include Cervical and Cervico-Thoracic Products, which include Trestle Luxe Anterior Cervical Plate System and Pegasus Anchored Cervical Interbody; Thoracolumbar Fixation Products, which include Arsenal Degenerative System and OsseoScrew Spinal Fixation System; Spinal Spacers, which include Battalion Universal Spacer System and Alphatec Solus Locking ALIF Spinal Spacer; minimally invasive surgery Products, which include Illico Minimally Invasive Surgery System and BridgePoint Spinous Process Fixation System, and Biologics, which include Neocore Osteoconductive Matrix.

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