Financial Analysis: MiMedx Group (NASDAQ:MDXG) and Alphatec (NASDAQ:ATEC)

MiMedx Group (NASDAQ:MDXG) and Alphatec (NASDAQ:ATEC) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MiMedx Group	23.86%	26.21%	18.15%
Alphatec	-31.06%	-541.39%	-22.99%

Risk and Volatility

MiMedx Group has a beta of 1.85, suggesting that its share price is 85% more volatile than the S&P 500. Comparatively, Alphatec has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for MiMedx Group and Alphatec, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MiMedx Group	0	0	2	0	3.00
Alphatec	0	1	8	0	2.89

MiMedx Group currently has a consensus price target of $12.50, indicating a potential upside of 75.56%. Alphatec has a consensus price target of $17.89, indicating a potential upside of 46.39%. Given MiMedx Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe MiMedx Group is more favorable than Alphatec.

Valuation & Earnings

This table compares MiMedx Group 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
MiMedx Group	$352.38 million	2.98	$58.23 million	$0.27	26.37
Alphatec	$642.27 million	2.78	-$186.64 million	($1.15)	-10.63

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

Institutional & Insider Ownership

79.2% of MiMedx Group shares are owned by institutional investors. Comparatively, 66.3% of Alphatec shares are owned by institutional investors. 1.3% of MiMedx Group shares are owned by company insiders. Comparatively, 20.9% of Alphatec shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

MiMedx Group beats Alphatec on 11 of the 14 factors compared between the two stocks.

About MiMedx Group

MiMedx Group, Inc. develops and distributes placental tissue allografts for various sectors of healthcare. It processes the human placental tissues utilizing its patented and proprietary PURION process to produce allografts that retains the tissue’s inherent biological properties and regulatory proteins. The company’s patented and proprietary processing method employs aseptic processing techniques in addition to terminal sterilization. Its products include EpiFix, a barrier membrane allograft used for the treatment of chronic wounds, including diabetic foot ulcers, venous leg ulcers, and pressure ulcers; AmnioFix, a protective barrier allograft, which comprises dehydrated human amnion/chorion membrane for use in surgical recovery applications; and EpiCord and AmnioCord are dehydrated human umbilical cord allografts that are used to provide a protective environment for the healing process, as well as used in the advanced wound care and surgical recovery applications. The company’s products have applications in the areas of wound care, burn, surgical sectors of healthcare. The company sells its products through direct sales force and independent sales agents, as well as through independent distributors primarily in the United States. MiMedx Group, Inc. was founded in 2006 and is headquartered in Marietta, Georgia.

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.