Analyzing Align Technology (ALGN) & Intuitive Surgical (ISRG)


Align Technology (NASDAQ: ALGN) and Intuitive Surgical (NASDAQ:ISRG) are both large-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.

Insider & Institutional Ownership

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79.4% of Align Technology shares are owned by institutional investors. Comparatively, 87.7% of Intuitive Surgical shares are owned by institutional investors. 1.4% of Align Technology shares are owned by company insiders. Comparatively, 2.2% of Intuitive Surgical shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.


Analyst Ratings

This is a summary of recent ratings and target prices for Align Technology and Intuitive Surgical, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Align Technology 0 3 12 0 2.80
Intuitive Surgical 0 4 12 0 2.75

Align Technology currently has a consensus price target of $267.20, indicating a potential downside of 10.34%. Intuitive Surgical has a consensus price target of $452.53, indicating a potential downside of 1.37%. Given Intuitive Surgical’s higher possible upside, analysts plainly believe Intuitive Surgical is more favorable than Align Technology.


Valuation and Earnings

This table compares Align Technology and Intuitive Surgical’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Align Technology $1.47 billion 16.21 $231.41 million $3.89 76.61
Intuitive Surgical $3.13 billion 16.61 $660.00 million $7.19 63.81

Intuitive Surgical has higher revenue and earnings than Align Technology. Intuitive Surgical is trading at a lower price-to-earnings ratio than Align Technology, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Align Technology has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500. Comparatively, Intuitive Surgical has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500.

Profitability

This table compares Align Technology and Intuitive Surgical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Align Technology 16.12% 30.36% 20.24%
Intuitive Surgical 23.25% 20.72% 17.70%

Summary

Intuitive Surgical beats Align Technology on 8 of the 13 factors compared between the two stocks.

Align Technology Company Profile

Align Technology, Inc. designs, manufactures, and markets a system of clear aligner therapy, intraoral scanners, and computer-aided design and computer-aided manufacturing (CAD/CAM) digital services. The company's Clear Aligner segment offers Invisalign Full, a treatment used for a range of malocclusion; Invisalign Teen treatment that addresses orthodontic needs of teenage patients, such as compliance indicators, compensation for tooth eruption, and six free single arch replacement aligners; and Invisalign Assist treatment for anterior alignment and aesthetically-oriented cases. It also provides Invisalign Express (10 and 5) and Invisalign Lite/i7 treatments for orthodontic cases, non-comprehensive treatment relapse cases, or straightening prior to restorative or cosmetic treatments; Invisalign Go, a solution for general practitioner dentists (GPs) to identify and treat patients with mild malocclusion; SmileDirectClub aligners for minor tooth movement; custom clear aligner retainers used to maintain tooth position and correct minor relapse; and SmartTrack, a custom-engineered material that delivers force for orthodontic tooth movements. The company's Scanners and Services segment offers iTero Scanner, a single hardware platform with software options for restorative or orthodontic procedures; and Restorative software for iTero, a software for GPs, prosthodontists, periodontists, and oral surgeons. It also provides Orthodontic software for iTero, a software for orthodontists for digital records storage, orthodontic diagnosis, Invisalign digital impression submission, and for the fabrication of printed models and retainers; CAD/CAM services, such as iTero Models and Dies, OrthoCAD iCast, and OrthoCAD iRecord; and Invisalign outcome simulator, a chair-side and cloud-based application for the iTero scanner, as well as third party scanners and digital scans for Invisalign treatment submission. The company was founded in 1997 and is headquartered in San Jose, California.


Intuitive Surgical Company Profile

Intuitive Surgical, Inc. designs, manufactures, and markets da Vinci surgical systems, and related instruments and accessories. The company's da Vinci surgical System translates a surgeon's natural hand movements, which are performed on instrument controls at a console into corresponding micro-movements of instruments positioned inside the patient through small incisions or ports. Its da Vinci surgical system include surgeon's consoles, patient-side carts, 3-D vision systems, da Vinci skills simulators, da Vinci Xi integrated table motions, and Firefly fluorescence imaging products that enable surgeons to perform various surgical procedures, including gynecologic, urologic, general, cardiothoracic, and head and neck surgical procedures. The company also manufactures EndoWrist instruments that include forceps, scissors, electrocautery, scalpels, and other surgical tools, which incorporate wrist joints for natural dexterity for various surgical procedures. In addition, it offers da Vinci Single-Site instruments and accessories that allow surgical systems to work through a single incision; and EndoWrist One vessel sealers that are wristed single-use instruments intended for bipolar coagulation and mechanical transection of vessels up to 7 mm in diameter and tissue bundles that fit in the jaws of the instrument. Further, the company provides EndoWrist stapler, a wristed stapling instrument intended for resection, transection, and/or creation of anastomoses, as well as sells various accessories, including replacement 3-D stereo endoscopes, camera heads, light guides, and other items that facilitate use of the da Vinci system, as well as sterile drapes for ensuring a sterile field during surgery. Intuitive Surgical, Inc. markets its products directly and through distributors in the United States, Europe, Asia, and internationally. The company was founded in 1995 and is headquartered in Sunnyvale, California.

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