HOLX vs. ALGN: Which MedTech Stock Is the Better Investment Pick Now?

Hologic HOLX and Align Technology ALGN are two well-established players in the medical technology (MedTech) market, each with distinct niche. Hologic develops diagnostics, surgical, and medical imaging technologies to advance women’s health. In the last five years, a series of tactical acquisitions helped expand the company’s existing businesses.

Align Technology designs and sells Invisalign clear aligners for the treatment of malocclusions, iTero intraoral scanners, and exocad computer-aided design and computer-aided manufacturing (“CAD/CAM”) software for dental laboratories and practitioners. The company also invests in clinical support, product improvements, technological innovations, clinical education and advertising to supplement growth.

With the global MedTech market projected to reach $666.25 billion, per Statista, investors are closely tracking opportunities in this sector to enhance their portfolio. Here’s a closer look at how the two companies currently stack up.

The Case for HOLX

Hologic’s Diagnostics division is largely driven by sales of the Molecular Diagnostics assays. Performance wise, the unit’s revenues fell 3.5% in the first quarter of 2026, mainly due to lower sales of COVID-19 tests and legacy assays for sexually transmitted infections (STIs). The decline was partially offset by stronger sales of BV CV/TV and Panther Fusion assays.

Last year, Hologic’s new Panther Fusion Gastrointestinal (GI) Bacterial and Expanded Bacterial Assays secured the FDA’s 510(k) clearance and CE-IVDR approval in the European Union. In addition, Biotheranostics is seeing strong adoption of Breast Cancer Index (BCI), a test that determines the benefit of extended endocrine therapy.

Within Breast Health, the acquisition of Endomagnetics in 2024 enhanced the Interventional business with cutting-edge products and R&D capabilities, contributing to the 1.8% revenue growth in the first quarter. Hologic is set to commercially launch the Envision Mammography Platform this year, offering patients a high-speed 3D mammogram with an industry-leading 2.5-second scan time.

The GYN Surgical division held momentum, with first-quarter sales up 8.7% year over year, driven by the Gynesonics acquisition and higher sales volume of MyoSure devices and Fluent Fluid Management products.

Hologic’s $18.3 billion take-private deal is edging toward completion, with 99.8% shareholder approval secured at the Feb. 5 special meeting. Under the terms, Blackstone and TPG will acquire all outstanding Hologic shares for $76 per share in cash, plus a non-tradable contingent value right (CVR) tied to certain global Breast Health revenue goals in fiscal 2026 and 2027. The aggregate purchase price of up to $79 per share represents a 46% premium to the May 23 closing price. With the stock closing yesterday’s session at $75.54, the cash offer implies a mere 0.6% upside.

The Case for ALGN

Align Technology’s total revenues reached a record $4 billion in 2025. In the fourth quarter, clear aligner volumes increased 6.7% year over year, driven by strong performance in EMEA, Latin America and APAC, along with stability in North America, and supported by growth among adult, teen and pediatric patients, as well as across GP and orthodontic channels.

A major strategic growth channel for Align Technology is the Dental service and orthodontic service organizations, DSOs or OSOs, which are growing faster than the traditional practices globally. Their scale, operational discipline, and need for consistent, tech-enabled workflows are driving rapid adoption of the company’s Invisalign system, iTero scanners and fully digital workflows across large networks of general dentists and orthodontists.

Align Technology’s portfolio strategy, including products with lower upfront cost options, is expanding access for doctors while supporting margins. Products such as Invisalign First, the Invisalign palate expander and Mandibular Advancement with Occlusal Blocks (MAOB) continues to fuel year-over-year growth across all regions. As of December 2025, more than 296,000 active Invisalign-trained doctors have treated more than 22 million people worldwide, including over 6.5 million teens.

The company’s expanding suite of digital diagnostic tools, including Align Oral Health Suite and Align X-ray Insights, supports earlier diagnosis and more informed treatment planning. When combined with the restorative capabilities of exocad and the visualization strength of iTero, these tools connect straightening, function and restorative care with a unified digital platform.

As of 2025 end, the company’s cash and cash equivalents totaled $1.09 billion with zero debt on its balance sheet.

EPS Projections for HOLX & ALGN

The Zacks Consensus Estimate for Hologic’s fiscal 2026 earnings indicates 5.4% year-over-year growth to $4.49. In the past 60 days, the estimate has moved downward.

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The Zacks Consensus Estimate for Align Technology’s 2026 EPS indicate 6.7% year-over-year growth to $11.21. The estimate has been revised upward in the past 60 days.

Image Source: Zacks Investment Research

HOLX vs. ALGN: Price Performance & Valuation

In the past three months, Hologic shares have climbed 1.5%, whereas Align Technology surged 13.2%.

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Hologic currently trades at a forward, two-year, price-to-sales (P/S) of 3.86X, slightly higher than its median. Align Technology’s 3.02X P/S sits below its median.

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End Note

While Hologic carries strong underlying fundamentals, lower COVID testing and legacy STI test sales have weighed on its recent Diagnostics performance. With its buyout deal progressing, the small spread between the cash offer price and current levels suggests limited upside. Hence, it seems wise for current shareholders to consider exiting their position.

On the other hand, Align Technology is driving record Clear Aligner volume growth and continues to make strong progress with DSOs, its strategic growth channel. Analyst sentiment remains positive, reflected in the company’s rising earnings estimates. Given its attractive valuation, existing investors may want to retain their stock position for long-term gains.

ALGN carries a Zacks Rank #3 (Hold), while HOLX has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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