Align Technology (NASDAQ:ALGN) & The Competition Critical Contrast

Align Technology (NASDAQ: ALGN) is one of 90 public companies in the “Medical Equipment, Supplies & Distribution” industry, but how does it weigh in compared to its peers? We will compare Align Technology to similar companies based on the strength of its dividends, valuation, profitability, earnings, risk, institutional ownership and analyst recommendations.

Institutional & Insider Ownership

81.2% of Align Technology shares are held by institutional investors. Comparatively, 67.6% of shares of all “Medical Equipment, Supplies & Distribution” companies are held by institutional investors. 1.6% of Align Technology shares are held by company insiders. Comparatively, 11.5% of shares of all “Medical Equipment, Supplies & Distribution” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Align Technology and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Align Technology 0 0 10 0 3.00
Align Technology Competitors 209 1297 2797 101 2.63

Align Technology presently has a consensus target price of $218.40, suggesting a potential downside of 12.45%. As a group, “Medical Equipment, Supplies & Distribution” companies have a potential upside of 7.51%. Given Align Technology’s peers higher possible upside, analysts clearly believe Align Technology has less favorable growth aspects than its peers.

Risk & Volatility

Align Technology has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500. Comparatively, Align Technology’s peers have a beta of 1.09, meaning that their average share price is 9% more volatile than the S&P 500.

Earnings and Valuation

This table compares Align Technology and its peers revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Align Technology $1.08 billion $189.68 million 75.59
Align Technology Competitors $1.06 billion $127.98 million 167.31

Align Technology has higher revenue and earnings than its peers. Align Technology is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Align Technology and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Align Technology 19.98% 25.60% 18.04%
Align Technology Competitors -128.97% -39.17% -10.29%

Summary

Align Technology beats its peers on 9 of the 13 factors compared.

About Align Technology

Align Technology, Inc. designs, manufactures and markets a system of clear aligner therapy, intra-oral scanners and computer-aided design/computer-aided manufacturing (CAD/CAM) digital services used in dentistry, orthodontics and dental records storage. The Company operates through two segments: Clear Aligner segment and Scanner and Services (Scanner) segment. The Clear Aligner segment consists of its Invisalign System, which includes Invisalign Full, Teen and Assist (Comprehensive Products), Express/Lite (Non-Comprehensive Products) and Vivera Retainers, along with its training and ancillary products for treating malocclusion (Non-Case). The Scanner segment consists of intra-oral scanning systems and other services available with the intra-oral scanners that provide digital alternatives to the traditional cast models. The Scanner segment includes its iTero scanner and OrthoCAD services.

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