Alere (NYSE: ALR) is one of 82 public companies in the “Advanced Medical Equipment & Technology” industry, but how does it contrast to its competitors? We will compare Alere to related companies based on the strength of its risk, profitability, analyst recommendations, earnings, valuation, institutional ownership and dividends.

Risk and Volatility

Alere has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500. Comparatively, Alere’s competitors have a beta of 0.89, indicating that their average stock price is 11% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Alere and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alere 0 5 0 0 2.00
Alere Competitors 266 1840 3297 105 2.59

Alere presently has a consensus price target of $48.00, suggesting a potential downside of 5.86%. As a group, “Advanced Medical Equipment & Technology” companies have a potential downside of 6.59%. Given Alere’s higher probable upside, analysts plainly believe Alere is more favorable than its competitors.

Profitability

This table compares Alere and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alere -16.86% -33.39% -6.72%
Alere Competitors -327.98% -35.74% -12.50%

Insider and Institutional Ownership

89.3% of Alere shares are owned by institutional investors. Comparatively, 51.0% of shares of all “Advanced Medical Equipment & Technology” companies are owned by institutional investors. 3.7% of Alere shares are owned by insiders. Comparatively, 18.6% of shares of all “Advanced Medical Equipment & Technology” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Alere and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Alere $2.32 billion $261.20 million -20.81
Alere Competitors $2.06 billion $438.96 million -77.91

Alere has higher revenue, but lower earnings than its competitors. Alere is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Alere Company Profile

Alere Inc. is a provider of health information through diagnostic tests. The Company’s segments include professional diagnostics, consumer diagnostics, and corporate and other. The professional diagnostics segment includes an array of diagnostic test products and other in vitro diagnostic tests marketed to medical professionals and laboratories for detection of diseases and conditions within its areas of focus. The consumer diagnostics segment consists primarily of manufacturing operations related to its role as the exclusive manufacturer of products for SPD Swiss Precision Diagnostics (SPD), its joint venture with The Procter & Gamble Company (P&G). The Company’s professional diagnostic solutions allow patients and their healthcare providers to work together to manage patients’ conditions over the continuum of care, from the hospital to home. The Company offers lines of drugs-of-abuse tests, reagent systems and laboratory testing options.

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