Cepheid (NASDAQ: CPHD) and Alphatec Holdings (NASDAQ:ATEC) are both healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, profitabiliy, institutional ownership and earnings.
Volatility and Risk
Cepheid has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, Alphatec Holdings has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500.
Profitability
This table compares Cepheid and Alphatec Holdings’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cepheid | -6.88% | -11.54% | -5.18% |
| Alphatec Holdings | -23.27% | N/A | -29.46% |
Insider and Institutional Ownership
95.8% of Cepheid shares are owned by institutional investors. Comparatively, 20.8% of Alphatec Holdings shares are owned by institutional investors. 4.2% of Cepheid shares are owned by company insiders. Comparatively, 34.9% of Alphatec Holdings shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings for Cepheid and Alphatec Holdings, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cepheid | 0 | 11 | 0 | 0 | 2.00 |
| Alphatec Holdings | 0 | 0 | 0 | 0 | N/A |
Cepheid presently has a consensus price target of $45.40, suggesting a potential downside of 14.26%. Given Cepheid’s higher possible upside, research analysts clearly believe Cepheid is more favorable than Alphatec Holdings.
Valuation & Earnings
This table compares Cepheid and Alphatec Holdings’ top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Cepheid | N/A | N/A | N/A | ($0.69) | -76.74 |
| Alphatec Holdings | N/A | N/A | N/A | ($3.37) | -0.51 |
Cepheid is trading at a lower price-to-earnings ratio than Alphatec Holdings, indicating that it is currently the more affordable of the two stocks.
Summary
Cepheid beats Alphatec Holdings on 5 of the 8 factors compared between the two stocks.
Cepheid Company Profile
Cepheid is a molecular diagnostics company. The Company develops, manufactures and markets fully-integrated systems for testing in the Clinical and Non-Clinical markets. The Company’s systems enable molecular testing for organisms and genetic-based diseases by automating otherwise complex manual laboratory procedures. The Company’s systems integrate these steps and analyze biological samples in test cartridges. Its primary offering is the GeneXpert system, which integrates sample preparation in addition to Deoxyribonucleic acid (DNA) amplification and detection. The GeneXpert system is designed for a range of user types ranging from reference laboratories and hospital central laboratories to satellite testing locations, such as emergency departments and intensive care units within hospitals, as well as physician offices and other alternate site laboratories. It also offers the SmartCycler system, which integrates DNA amplification and detection to allow rapid analysis of a sample.
Alphatec Holdings Company Profile
Alphatec Holdings, Inc. is a medical technology company. The Company through its subsidiary, Alphatec Spine, Inc. and its subsidiaries, designs, develops, manufactures and markets products for the surgical treatment of spine disorders. Its product portfolio and pipeline addresses the cervical, thoracolumbar and intervertebral regions of the spine and covers a range of spinal disorders and surgical procedures. Its products include Cervical and Cervico-Thoracic Products, which include Trestle Luxe Anterior Cervical Plate System and Pegasus Anchored Cervical Interbody; Thoracolumbar Fixation Products, which include Arsenal Degenerative System and OsseoScrew Spinal Fixation System; Spinal Spacers, which include Battalion Universal Spacer System and Alphatec Solus Locking ALIF Spinal Spacer; minimally invasive surgery Products, which include Illico Minimally Invasive Surgery System and BridgePoint Spinous Process Fixation System, and Biologics, which include Neocore Osteoconductive Matrix.
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