Reviewing Align Technology (NASDAQ:ALGN) and Lancer Orthodontics (OTCMKTS:LANZ)

Lancer Orthodontics (OTCMKTS:LANZ) and Align Technology (NASDAQ:ALGN) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.

Valuation and Earnings

This table compares Lancer Orthodontics and Align Technology”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lancer Orthodontics	N/A	N/A	N/A	N/A	N/A
Align Technology	$4.03 billion	3.08	$410.35 million	$5.96	29.15

Align Technology has higher revenue and earnings than Lancer Orthodontics.

Insider and Institutional Ownership

88.4% of Align Technology shares are owned by institutional investors. 24.3% of Lancer Orthodontics shares are owned by insiders. Comparatively, 0.8% of Align Technology shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Lancer Orthodontics and Align Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lancer Orthodontics	N/A	N/A	N/A
Align Technology	10.50%	15.82%	10.17%

Risk & Volatility

Lancer Orthodontics has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, Align Technology has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Lancer Orthodontics and Align Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lancer Orthodontics	0	0	0	0	0.00
Align Technology	0	5	8	1	2.71

Align Technology has a consensus target price of $205.85, suggesting a potential upside of 18.47%. Given Align Technology’s stronger consensus rating and higher possible upside, analysts plainly believe Align Technology is more favorable than Lancer Orthodontics.

Summary

Align Technology beats Lancer Orthodontics on 10 of the 11 factors compared between the two stocks.

About Lancer Orthodontics

Lancer Orthodontics, Inc. designs, manufactures, and markets orthodontic products for orthodontists and dentists worldwide. It offers aesthetic brackets, brackets and buccal tubes, bands, adhesives, wires, elastomerics, intraoral and extraoral appliances, instruments, and miscellaneous products. The company was founded in 1967 and is based in Vista, California.

About Align Technology

Align Technology, Inc. designs, manufactures, and markets Invisalign clear aligners, and iTero intraoral scanners and services for orthodontists and general practitioner dentists in the United States, Switzerland, and internationally. The company's Clear Aligner segment offers comprehensive products, including Invisalign comprehensive package that addresses the orthodontic needs of younger patients, such as mandibular advancement, compliance indicators, and compensation for tooth eruption; and Invisalign First Phase I and Invisalign First Comprehensive Phase 2 package for younger patients generally between the ages of six and ten years, which is a mixture of primary/baby and permanent teeth. The segment also provides Invisalign moderate, lite and express packages, and Invisalign go and Invisalign Go Plus; retention products, Invisalign training, and adjusting tools used by dental professionals during the course of treatment; and Invisalign Palatal Expander, a 3D printed orthodontic device; and 3D printing solutions. Its Imaging Systems and CAD/CAM Services segment offers iTero intraoral scanning system, a single hardware platform for restorative or orthodontic procedures; restorative software for general practitioner dentists, prosthodontists, periodontists, and oral surgeons; and orthodontists software for digital records storage, orthodontic diagnosis, and fabrication of printed models and retainers. This segment also provides Invisalign outcome simulator, a chair-side and cloud-based application for the iTero scanner; Invisalign progress assessment tool; Align Oral Health Suite, a digital interface designed to enhance dental consultations; and TimeLapse technology, which allows doctors or practitioners to compare a patient's historic 3D scans to the present-day scan, as well as subscription software, disposables, rentals, leases, pay per scan, and CAD/CAM software solutions. The company was incorporated in 1997 and is headquartered in Tempe, Arizona.