Contrasting Alphatec (NASDAQ:ATEC) & PAVmed (NASDAQ:PAVM)

PAVmed (NASDAQ:PAVM) and Alphatec (NASDAQ:ATEC) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.

Analyst Recommendations

This is a summary of recent recommendations for PAVmed and Alphatec, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PAVmed	0	1	0	1	3.00
Alphatec	0	0	8	0	3.00

PAVmed currently has a consensus price target of $21.00, indicating a potential upside of 2,648.69%. Alphatec has a consensus price target of $21.75, indicating a potential upside of 117.94%. Given PAVmed’s higher possible upside, research analysts plainly believe PAVmed is more favorable than Alphatec.

Insider and Institutional Ownership

19.9% of PAVmed shares are owned by institutional investors. Comparatively, 66.4% of Alphatec shares are owned by institutional investors. 12.6% of PAVmed shares are owned by insiders. Comparatively, 22.8% of Alphatec shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PAVmed	-2,037.67%	N/A	-99.19%
Alphatec	-37.45%	-1,767.81%	-26.63%

Volatility and Risk

PAVmed has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500. Comparatively, Alphatec has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.

Valuation & Earnings

This table compares PAVmed and Alphatec’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PAVmed	$2.45 million	2.94	-$64.18 million	($9.10)	-0.08
Alphatec	$482.26 million	2.89	-$186.64 million	($1.49)	-6.70

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

Summary

Alphatec beats PAVmed on 8 of the 14 factors compared between the two stocks.

About PAVmed

PAVmed Inc. focuses on acquiring, developing, and commercializing novel products that target unmet needs in the United States. The company's lead products include CarpX, a patented, single-use, disposable, and minimally invasive surgical device for use in the treatment of carpal tunnel syndrome; EsoCheck Esophageal Cell Collection Device, which consists of diagnostic test that serves as a testing tool for preventing esophageal adenocarcinoma deaths, through early detection of esophageal precancer in at-risk gastroesophageal reflux disease, including chronic heartburn and acid reflux or simply reflux in patients; and EsoGuard, a bisulfite-converted next-generation sequencing DNA assay performed on surface esophageal cells collected with EsoCheck. Its product pipeline also comprises EsoCure EsoCure Esophageal Ablation Device for treating dysplastic BE; PortIO, an implantable intraosseous vascular access device; and Veris cancer care platform. The company was formerly known as PAXmed Inc. and changed its name to PAVmed Inc. in April 2015. PAVmed Inc. was incorporated in 2014 and is headquartered in New York, New York.

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.