IQVIA (NYSE:IQV) versus Alphatec (NASDAQ:ATEC) Critical Review

IQVIA (NYSE:IQV) and Alphatec (NASDAQ:ATEC) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Insider and Institutional Ownership

89.6% of IQVIA shares are owned by institutional investors. Comparatively, 66.4% of Alphatec shares are owned by institutional investors. 1.7% of IQVIA shares are owned by insiders. Comparatively, 13.5% of Alphatec shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
IQVIA	8.33%	30.50%	6.53%
Alphatec	-15.93%	-1,183.84%	-15.83%

Earnings & Valuation

This table compares IQVIA and Alphatec”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IQVIA	$16.31 billion	1.70	$1.36 billion	$8.07	20.57
Alphatec	$764.16 million	1.58	-$143.36 million	($0.82)	-9.55

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

Risk and Volatility

IQVIA has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, Alphatec has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for IQVIA and Alphatec, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IQVIA	0	2	13	2	3.00
Alphatec	1	1	10	0	2.75

IQVIA presently has a consensus price target of $225.69, suggesting a potential upside of 35.98%. Alphatec has a consensus price target of $18.58, suggesting a potential upside of 137.34%. Given Alphatec’s higher possible upside, analysts plainly believe Alphatec is more favorable than IQVIA.

Summary

IQVIA beats Alphatec on 13 of the 15 factors compared between the two stocks.

About IQVIA

IQVIA Holdings Inc. engages in the provision of advanced analytics, technology solutions, and clinical research services to the life sciences industry in the Americas, Europe, Africa, and the Asia-Pacific. It operates through three segments: Technology & Analytics Solutions, Research & Development Solutions, and Contract Sales & Medical Solutions. The Technology & Analytics Solutions segment offers a range of cloud-based applications and related implementation services; real world solutions that enable life sciences and provider customers to generate and disseminate evidence, which informs health care decision making and improves patients’ outcomes; and strategic and implementation consulting services, such as advanced analytics and commercial processes outsourcing services. This segment also provides country level performance metrics related to sales of pharmaceutical products, prescribing trends, medical treatment, and promotional activity across various channels, including retail, hospital, and mail order; and measurement of sales or prescribing activity at the regional, zip code, and individual prescriber level. The Research & Development Solutions segment offers project management and clinical monitoring; clinical trial support; strategic planning and design services; and patient and site centric solutions, as well as central laboratory, genomic, bioanalytical, ADME, discovery, and vaccine and biomarker laboratory services. The Contract Sales & Medical Solutions segment provides health care provider and patient engagement services, and scientific strategy and medical affairs services. It serves pharmaceutical, biotechnology, device and diagnostic, and consumer health companies. The company has a collaboration with argenx SE. The company was formerly known as Quintiles IMS Holdings, Inc. and changed its name to IQVIA Holdings Inc. in November 2017. The company is headquartered in Durham, North Carolina.

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.