Alphatec Holdings, Inc. (ATEC) vs Inspire Medical Systems, Inc. (INSP)

Alphatec Holdings, Inc. and Inspire Medical Systems, Inc. are both Medical Devices companies. Inspire Medical Systems, Inc. is the larger, with a market value of $2.0B against $1.5B — 1.3× the size. Alphatec Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; Inspire Medical Systems, Inc. trades at 15.1×. Alphatec Holdings, Inc. grew revenue faster over the last twelve months: 19.5% against 4.35%. Inspire Medical Systems, Inc. has the higher net margin (15.0% vs −13.5%) and the higher return on invested capital (6.70% vs −8.10%). Across the 18 metrics below, Inspire Medical Systems, Inc. leads on 15 and Alphatec Holdings, Inc. on 3.

Valuation

Metric ATEC INSP Medical Devices median
P/E n/m 15.13 22.18
P/S 1.94 2.26 2.70
P/B n/m 2.46 2.46
Price to free cash flow n/m 17.36 22.53
EV/EBITDA 33.03 24.81 11.78
EV/Sales 2.50 1.93 2.38
Earnings yield (7.02%) 6.61% (8.22%)
Free cash flow yield (0.36%) 5.76% (7.80%)

Profitability

Metric ATEC INSP Medical Devices median
Gross margin 68.99% 86.13% 56.01%
Operating margin (6.04%) 6.02% (15.03%)
Net margin (13.50%) 15.03% (20.40%)
Free cash flow margin (0.70%) 13.03% (7.24%)
Return on equity (1,879.90%) 17.96% (15.32%)
Return on assets (13.91%) 15.63% (19.72%)
Return on invested capital (8.10%) 6.70% (10.33%)

Growth

Metric ATEC INSP Medical Devices median
Revenue growth (TTM) 19.47% 4.35% 8.80%
EPS growth (last fiscal year) 15.04% 179.43% —
Revenue growth, 5-year CAGR 39.46% 51.21% 15.23%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ATEC INSP Medical Devices median
Debt to equity (42.32) 0.00 0.07
Current ratio 1.89 8.55 2.50
Net debt to EBITDA 14.84 (4.97) 0.49

Dividend

Metric ATEC INSP Medical Devices median
Dividend yield — — 0.94%
Payout ratio 0.00 0.00 0.00

Size

Metric ATEC INSP Medical Devices median
Market cap 1.53b 1.96b 172.91m

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