TerrAscend (OTCMKTS:TSNDF – Get Free Report) and Alphatec (NASDAQ:ATEC – Get Free Report) are both small-cap healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.
Risk and Volatility
TerrAscend has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, Alphatec has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500.
Institutional and Insider Ownership
5.8% of TerrAscend shares are held by institutional investors. Comparatively, 66.3% of Alphatec shares are held by institutional investors. 31.9% of TerrAscend shares are held by company insiders. Comparatively, 13.5% of Alphatec shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TerrAscend | 0 | 1 | 0 | 0 | 2.00 |
| Alphatec | 1 | 1 | 13 | 0 | 2.80 |
Alphatec has a consensus target price of $17.40, suggesting a potential upside of 56.62%. Given Alphatec’s stronger consensus rating and higher possible upside, analysts plainly believe Alphatec is more favorable than TerrAscend.
Profitability
This table compares TerrAscend and Alphatec’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TerrAscend | -31.01% | -32.93% | -5.49% |
| Alphatec | -13.49% | -6,752.24% | -13.88% |
Valuation and Earnings
This table compares TerrAscend and Alphatec”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TerrAscend | $260.56 million | 0.55 | -$81.33 million | ($0.11) | -4.23 |
| Alphatec | $764.16 million | 2.25 | -$143.36 million | ($0.71) | -15.65 |
TerrAscend has higher earnings, but lower revenue than Alphatec. Alphatec is trading at a lower price-to-earnings ratio than TerrAscend, indicating that it is currently the more affordable of the two stocks.
About TerrAscend
TerrAscend Corp. cultivates, processes, and sells medical and adult use cannabis in Canada and the United States. The company produces and distributes hemp-derived wellness products to retail locations; and manufactures vaporizables, concentrates, topicals, tinctures and edibles. It also operates retail dispensaries under the Apothecarium and State Flower brand names. The company was incorporated in 2017 and is headquartered in Mississauga, Canada.
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.
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