ALGN (Align Technology Inc) vs S&P 500 Comparison

ALGN

S&P 500

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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ALGN

S&P 500

Difference

1Y 3Y 5Y 10Y 15Y 20Y

ALGN

S&P 500

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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S&P 500

ALGN

7741

ALC

COLO B

300832

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1Y 3Y 5Y 10Y 15Y 20Y

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Align Technology Inc
Glance View

Economic Moat

None

Market Cap

16.3B USD

Industry

Health Care

Align Technology Inc., a pioneer in the orthodontics industry, has revolutionized the way teeth straightening is perceived, moving away from traditional bracketed wire braces to sleek, invisible aligners. Founded in 1997 by Zia Chishti and Kelsey Wirth, the company capitalized on a gap in the market for more aesthetically pleasing orthodontic solutions, ultimately launching its flagship product, Invisalign. Leveraging a combination of 3D computer imaging technology and mass customization, Align Technology creates tailored aligners that gradually move teeth into the desired position. The aligners are not only discreet but also removable, offering a level of convenience that latches onto the desires of image-conscious teens and adults alike. The company's business model is firmly anchored in both product innovation and strategic marketing. With Invisalign, Align Technology generates revenue by selling its clear aligner systems primarily to orthodontists and general practitioner dentists. The success of their model rests heavily on establishing and maintaining relationships with these dental professionals, who in turn promote the product to patients. Additionally, Align supports its aligners with a suite of digital orthodontic solutions, including the iTero intraoral scanners, which enhance the precision of orthodontic treatments. This integration of proprietary technology with ongoing educational initiatives ensures that Align Technology doesn’t just sell a product, but rather, innovates a comprehensive service that drives sustained brand loyalty and repeat business.

View ALGN Analysis

ALGN Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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CH		Alcon AG SIX:ALC	Add
DK		Coloplast A/S CSE:COLO B	Add
CN		Shenzhen New Industries Biomedical Engineering Co Ltd SZSE:300832	Add
KR	H	HLB Inc KOSDAQ:028300	Add
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CH		Ypsomed Holding AG SIX:YPSN	Add

JP		Hoya Corp TSE:7741	Select
CH		Alcon AG SIX:ALC	Select
DK		Coloplast A/S CSE:COLO B	Select
CN		Shenzhen New Industries Biomedical Engineering Co Ltd SZSE:300832	Select
KR	H	HLB Inc KOSDAQ:028300	Select
US		Lantheus Holdings Inc NASDAQ:LNTH	Select
CA		Bausch + Lomb Corp NYSE:BLCO	Select
UK		ConvaTec Group PLC LSE:CTEC	Select
US		Merit Medical Systems Inc NASDAQ:MMSI	Select
CH		Ypsomed Holding AG SIX:YPSN	Select

JP		Hoya Corp TSE:7741	Add
CH		Alcon AG SIX:ALC	Add
DK		Coloplast A/S CSE:COLO B	Add
CN		Shenzhen New Industries Biomedical Engineering Co Ltd SZSE:300832	Add
KR	H	HLB Inc KOSDAQ:028300	Add
US		Lantheus Holdings Inc NASDAQ:LNTH	Add
CA		Bausch + Lomb Corp NYSE:BLCO	Add
UK		ConvaTec Group PLC LSE:CTEC	Add
US		Merit Medical Systems Inc NASDAQ:MMSI	Add
CH		Ypsomed Holding AG SIX:YPSN	Add

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ALGN

vs

S&P 500

Stocks Performance
ALGN vs S&P 500

Performance Gap
ALGN vs S&P 500

Performance By Year
ALGN vs S&P 500

Competitors Performance
Align Technology Inc vs Peers

Align Technology Inc
Glance View

Company

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ALGN vs S&P 500

Stocks Performance ALGN vs S&P 500

Performance Gap ALGN vs S&P 500

Performance By Year ALGN vs S&P 500

Competitors Performance Align Technology Inc vs Peers

Align Technology Inc Glance View

Company

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Stocks

ALGN

vs

S&P 500

Stocks Performance
ALGN vs S&P 500

Performance Gap
ALGN vs S&P 500

Performance By Year
ALGN vs S&P 500

Competitors Performance
Align Technology Inc vs Peers

Align Technology Inc
Glance View