InspireMD (NYSE:NSPR) & Pro-Dex (NASDAQ:PDEX) Financial Comparison

InspireMD (NYSE:NSPR) and Pro-Dex (NASDAQ:PDEX) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.

Analyst Ratings

This is a summary of current ratings and recommmendations for InspireMD and Pro-Dex, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InspireMD	0	0	2	0	3.00
Pro-Dex	0	0	1	0	3.00

InspireMD presently has a consensus target price of $4.50, suggesting a potential upside of 77.17%. Pro-Dex has a consensus target price of $56.00, suggesting a potential upside of 42.71%. Given InspireMD’s higher probable upside, equities research analysts plainly believe InspireMD is more favorable than Pro-Dex.

Institutional & Insider Ownership

44.8% of InspireMD shares are owned by institutional investors. Comparatively, 15.3% of Pro-Dex shares are owned by institutional investors. 34.1% of InspireMD shares are owned by insiders. Comparatively, 47.5% of Pro-Dex shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

InspireMD has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, Pro-Dex has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500.

Profitability

This table compares InspireMD and Pro-Dex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InspireMD	-413.96%	-69.42%	-57.68%
Pro-Dex	11.06%	21.68%	12.40%

Valuation & Earnings

This table compares InspireMD and Pro-Dex”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InspireMD	$7.03 million	11.07	-$19.92 million	($0.79)	-3.22
Pro-Dex	$64.12 million	2.00	$2.13 million	$2.80	14.01

Pro-Dex has higher revenue and earnings than InspireMD. InspireMD is trading at a lower price-to-earnings ratio than Pro-Dex, indicating that it is currently the more affordable of the two stocks.

Summary

Pro-Dex beats InspireMD on 8 of the 13 factors compared between the two stocks.

About InspireMD

InspireMD, Inc., a medical device company, focuses on the development and commercialization of MicroNet stent platform technology for the treatment of vascular and coronary diseases in Europe, Latin America, the Middle East, and Asia Pacific. The company offers CGuard carotid embolic prevention system (EPS) for use in carotid artery applications; CGuard Prime Stent System, a mesh-covered self-expanding carotid stent; and SwitchGuard NPS, a non-invasive transcarotid artery revascularization device; as well as treating acute stroke with tandem lesions. InspireMD, Inc. has a strategic agreement with Jacobs Institute to execute an early feasibility study of CGuard Prime for the treatment of acute stroke patients with tandem lesions. The company sells its products through local distribution partners. InspireMD, Inc. was founded in 2005 and is headquartered in Tel Aviv-Yafo, Israel.

About Pro-Dex

Pro-Dex, Inc. designs, develops, manufactures, and sells powered surgical instruments for medical device original equipment manufacturers worldwide. The company offers autoclavable, battery-powered and electric, and multi-function surgical drivers and shavers that are primarily used in the orthopedic, thoracic, and craniomaxillofacial markets. It also provides engineering, quality, and regulatory consulting services; and manufactures and sells rotary air motors to various industries. The company's products are used in hospitals, medical engineering labs, scientific research facilities, and high-tech manufacturing operations. Pro-Dex, Inc. was founded in 1978 and is headquartered in Irvine, California.