Head to Head Survey: Cardinal Health (NYSE:CAH) vs. Pro-Dex (NASDAQ:PDEX)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cardinal Health	0.68%	-84.37%	4.19%
Pro-Dex	15.94%	23.64%	13.73%

Analyst Ratings

This is a summary of recent ratings and price targets for Cardinal Health and Pro-Dex, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cardinal Health	0	3	13	0	2.81
Pro-Dex	0	1	1	0	2.50

Cardinal Health presently has a consensus target price of $209.00, suggesting a potential upside of 1.65%. Pro-Dex has a consensus target price of $56.00, suggesting a potential upside of 48.46%. Given Pro-Dex’s higher possible upside, analysts clearly believe Pro-Dex is more favorable than Cardinal Health.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cardinal Health	$234.31 billion	0.21	$1.56 billion	$6.63	31.01
Pro-Dex	$66.59 million	1.85	$8.98 million	$3.35	11.26

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

Risk & Volatility

Cardinal Health has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, Pro-Dex has a beta of -0.05, indicating that its share price is 105% less volatile than the S&P 500.

Insider and Institutional Ownership

87.2% of Cardinal Health shares are held by institutional investors. Comparatively, 15.3% of Pro-Dex shares are held by institutional investors. 0.1% of Cardinal Health shares are held by company insiders. Comparatively, 45.9% of Pro-Dex shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Cardinal Health beats Pro-Dex on 8 of the 14 factors compared between the two stocks.

About Cardinal Health

Cardinal Health, Inc. operates as a healthcare services and products company in the United States, Canada, Europe, Asia, and internationally. It provides customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home. The company operates in two segments, Pharmaceutical and Medical. The Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, and over-the-counter healthcare and consumer products. The segment also provides services to pharmaceutical manufacturers and healthcare providers for specialty pharmaceutical products; operates nuclear pharmacies and radiopharmaceutical manufacturing facilities; repackages generic pharmaceuticals and over-the-counter healthcare products; and provides pharmacy management services to hospitals. The Medical segment manufactures, sources, and distributes Cardinal Health branded medical, surgical, and laboratory products and devices that include exam and surgical gloves; needles, syringe, and sharps disposals; compressions; incontinences; nutritional delivery products; wound care products; single-use surgical drapes, gowns, and apparels; fluid suction and collection systems; urology products; operating room supply products; and electrode product lines. The segment also distributes a range of national brand products, including medical, surgical, and laboratory products; provides supply chain services and solutions to hospitals, ambulatory surgery centers, clinical laboratories, and other healthcare providers; and assembles and sells sterile, and non-sterile procedure kits. The company was incorporated in 1979 and is headquartered in Dublin, Ohio.

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.