Reviewing Pro-Dex (NASDAQ:PDEX) and Lancer Orthodontics (OTCMKTS:LANZ)

Pro-Dex (NASDAQ:PDEX) and Lancer Orthodontics (OTCMKTS:LANZ) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, risk, earnings, valuation and analyst recommendations.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pro-Dex	$66.59 million	1.41	$8.98 million	$2.70	10.63
Lancer Orthodontics	N/A	N/A	N/A	N/A	N/A

Pro-Dex has higher revenue and earnings than Lancer Orthodontics.

Analyst Recommendations

This is a summary of recent recommendations for Pro-Dex and Lancer Orthodontics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pro-Dex	0	1	1	0	2.50
Lancer Orthodontics	0	0	0	0	0.00

Pro-Dex presently has a consensus price target of $56.00, indicating a potential upside of 95.05%. Given Pro-Dex’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Pro-Dex is more favorable than Lancer Orthodontics.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pro-Dex	13.48%	26.67%	14.95%
Lancer Orthodontics	N/A	N/A	N/A

Institutional & Insider Ownership

15.3% of Pro-Dex shares are held by institutional investors. 45.9% of Pro-Dex shares are held by insiders. Comparatively, 24.3% of Lancer Orthodontics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Pro-Dex has a beta of -0.11, indicating that its share price is 111% less volatile than the S&P 500. Comparatively, Lancer Orthodontics has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.

Summary

Pro-Dex beats Lancer Orthodontics on 9 of the 10 factors compared between the two stocks.

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.

About Lancer Orthodontics

Lancer Orthodontics, Inc. designs, manufactures, and markets orthodontic products for orthodontists and dentists worldwide. It offers aesthetic brackets, brackets and buccal tubes, bands, adhesives, wires, elastomerics, intraoral and extraoral appliances, instruments, and miscellaneous products. The company was founded in 1967 and is based in Vista, California.