Align Technology (NASDAQ: ALGN) is one of 84 public companies in the “Medical Equipment, Supplies & Distribution” industry, but how does it contrast to its competitors? We will compare Align Technology to similar businesses based on the strength of its institutional ownership, analyst recommendations, risk, profitability, earnings, dividends and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
Align Technology 19.18% 23.87% 16.93%
Align Technology Competitors -126.98% -36.36% -10.16%

Volatility and Risk

Align Technology has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500. Comparatively, Align Technology’s competitors have a beta of 1.06, meaning that their average stock price is 6% more volatile than the S&P 500.

Earnings & Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Align Technology $1.24 billion $306.55 million 68.79
Align Technology Competitors $827.23 million $159.50 million 36.89

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Align Technology and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Align Technology 0 0 10 0 3.00
Align Technology Competitors 174 1133 2482 89 2.64

Align Technology currently has a consensus target price of $198.50, suggesting a potential downside of 1.18%. As a group, “Medical Equipment, Supplies & Distribution” companies have a potential upside of 8.71%. Given Align Technology’s competitors higher probable upside, analysts clearly believe Align Technology has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

81.5% of Align Technology shares are held by institutional investors. Comparatively, 65.5% 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, 11.2% of shares of all “Medical Equipment, Supplies & Distribution” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Align Technology beats its competitors on 10 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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