Pro-Dex (NASDAQ:PDEX) vs. Becton, Dickinson and Company (NYSE:BDX) Critical Comparison

Becton, Dickinson and Company (NYSE:BDX) and Pro-Dex (NASDAQ:PDEX) are both medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.

Analyst Recommendations

This is a summary of recent recommendations for Becton, Dickinson and Company and Pro-Dex, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Becton, Dickinson and Company	0	7	4	0	2.36
Pro-Dex	0	0	1	0	3.00

Becton, Dickinson and Company currently has a consensus price target of $219.22, indicating a potential upside of 22.57%. Pro-Dex has a consensus price target of $56.00, indicating a potential upside of 21.24%. Given Becton, Dickinson and Company’s higher probable upside, equities research analysts plainly believe Becton, Dickinson and Company is more favorable than Pro-Dex.

Institutional & Insider Ownership

87.0% of Becton, Dickinson and Company shares are held by institutional investors. Comparatively, 15.3% of Pro-Dex shares are held by institutional investors. 0.4% of Becton, Dickinson and Company shares are held by insiders. Comparatively, 47.5% of Pro-Dex shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Becton, Dickinson and Company	7.28%	15.99%	7.36%
Pro-Dex	14.61%	29.08%	16.19%

Earnings and Valuation

This table compares Becton, Dickinson and Company and Pro-Dex”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Becton, Dickinson and Company	$20.18 billion	2.54	$1.71 billion	$5.24	34.13
Pro-Dex	$53.84 million	2.80	$2.13 million	$2.80	16.50

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

Volatility and Risk

Becton, Dickinson and Company has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500. Comparatively, Pro-Dex has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500.

Summary

Becton, Dickinson and Company beats Pro-Dex on 8 of the 14 factors compared between the two stocks.

About Becton, Dickinson and Company

Becton, Dickinson and Company develops, manufactures, and sells medical supplies, devices, laboratory equipment, and diagnostic products for healthcare institutions, physicians, life science researchers, clinical laboratories, pharmaceutical industry, and the general public worldwide. The company operates in three segments: BD Medical, BD Life Sciences, and BD Interventional. The BD Medical segment provides peripheral intravenous (IV) and advanced peripheral catheters, central lines, acute dialysis catheters, vascular access technology, vascular care and preparation products, needle-free IV connectors and extensions sets, closed-system drug transfer devices, hazardous drug detections, hypodermic syringes and needles, anesthesia needles and trays, enteral syringes, and sharps disposal systems; IV medication safety and infusion therapy delivery systems, medication compounding workflow systems, automated medication dispensing and supply management systems, and medication inventory optimization and tracking systems; and prefillable drug delivery systems. The BD Life Sciences segment offers specimen and blood collection products; automated blood and tuberculosis culturing, molecular testing, microorganism identification and drug susceptibility, and liquid-based cytology systems, as well as rapid diagnostic assays, microbiology laboratory automation products, and plated media products; and fluorescence-activated cell sorters and analyzers, antibodies and kits, reagent systems, and solutions for single-cell gene expression analysis, as well as clinical oncology, immunological, and transplantation diagnostic/monitoring reagents and analyzers. The BD Interventional segment provides hernia and soft tissue repair, biological and bioresorbable grafts, biosurgery, and other surgical products; surgical infection prevention; peripheral intervention products; and urology and critical care products. The company was founded in 1897 and is headquartered in Franklin Lakes, New Jersey.

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.