Reviewing Alphatec (NASDAQ:ATEC) and Modular Medical (OTC:MODD)

Alphatec (NASDAQ:ATEC – Get Rating) and Modular Medical (OTC:MODD – Get Rating) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, dividends, valuation and profitability.

Valuation & Earnings

This table compares Alphatec and Modular Medical’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alphatec	$350.87 million	4.85	-$152.15 million	($1.47)	-10.41
Modular Medical	N/A	N/A	-$18.63 million	($1.48)	-1.29

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

Risk and Volatility

Alphatec has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, Modular Medical has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500.

Insider & Institutional Ownership

48.6% of Alphatec shares are owned by institutional investors. Comparatively, 14.7% of Modular Medical shares are owned by institutional investors. 33.9% of Alphatec shares are owned by company insiders. Comparatively, 59.2% of Modular Medical shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alphatec	-43.36%	-575.45%	-29.11%
Modular Medical	N/A	-145.00%	-133.88%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Alphatec and Modular Medical, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alphatec	0	1	5	0	2.83
Modular Medical	0	0	2	0	3.00

Alphatec currently has a consensus price target of $16.25, suggesting a potential upside of 6.21%. Modular Medical has a consensus price target of $8.00, suggesting a potential upside of 318.85%. Given Modular Medical’s stronger consensus rating and higher probable upside, analysts clearly believe Modular Medical is more favorable than Alphatec.

Summary

Modular Medical beats Alphatec on 7 of the 13 factors compared between the two stocks.

About Alphatec

(Get Rating)

Alphatec Holdings, Inc. engages in the design, development, and marketing of spinal fusion technology products and solutions for the treatment of spinal disorders. It offers intra-operative information and neuromonitoring technologies, access systems, interbody implants, fixation systems, and various biologics offerings. The company was founded on March 4, 2005 and is headquartered in Carlsbad, CA.

About Modular Medical

(Get Rating)

Modular Medical, Inc., a development stage medical device company, focuses on the design, development, and commercialization of insulin pumps using technology to enhance pump adoption in the diabetes marketplace. The company is headquartered in San Diego, California.