Pro-Dex (NASDAQ:PDEX) vs. Merit Medical Systems (NASDAQ:MMSI) Head to Head Analysis

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

Volatility and Risk

Pro-Dex has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500. Comparatively, Merit Medical Systems has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.

Valuation and Earnings

This table compares Pro-Dex and Merit Medical Systems”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pro-Dex	$53.84 million	1.85	$2.13 million	$0.58	50.24
Merit Medical Systems	$1.30 billion	4.19	$94.41 million	$1.74	53.89

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Pro-Dex and Merit Medical Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pro-Dex	0	0	1	0	3.00
Merit Medical Systems	0	2	9	1	2.92

Pro-Dex presently has a consensus target price of $30.00, indicating a potential upside of 2.95%. Merit Medical Systems has a consensus target price of $101.82, indicating a potential upside of 8.59%. Given Merit Medical Systems’ higher probable upside, analysts plainly believe Merit Medical Systems is more favorable than Pro-Dex.

Profitability

This table compares Pro-Dex and Merit Medical Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pro-Dex	3.95%	6.82%	4.17%
Merit Medical Systems	9.02%	15.29%	8.58%

Institutional and Insider Ownership

15.3% of Pro-Dex shares are owned by institutional investors. Comparatively, 99.7% of Merit Medical Systems shares are owned by institutional investors. 42.6% of Pro-Dex shares are owned by insiders. Comparatively, 3.7% of Merit Medical Systems shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Merit Medical Systems beats Pro-Dex on 13 of the 15 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 Merit Medical Systems

Merit Medical Systems, Inc. designs, develops, manufactures, and markets single-use medical products for interventional, diagnostic, and therapeutic procedures in the United States and internationally. It operates in two segments, Cardiovascular and Endoscopy. The company provides micropuncture kits, angiographic needles, sheaths, guide wires, and safety products; peripheral intervention, including angiography, drainage, delivery systems, and embolotherapy products; spine products, such as vertebral augmentation, radiofrequency ablation, and bone biopsy systems; oncology products; and cardiac intervention products, such as access, angiography, electrophysiology and cardiac rhythm management, fluid management, hemodynamic monitoring, hemostasis, and intervention to treat various heart conditions. It also offers custom procedural solutions that include critical care products, disinfection protection systems, syringes, manifold kits, and trays and packs; coating services for medical tubes and wires; and sensor components for microelectromechanical systems. In addition, the company provides pulmonary products that consist of laser-cut tracheobronchial stents, over-the-wire and direct visualization delivery systems, and dilation balloons to endoscopically dilate structures; gastroenterology products, such as covered esophageal stents, syringe and gauges, and balloon dilators; and kits and accessories for endoscopy and bronchoscopy procedures. It sells its products to hospitals and alternate site-based physicians, technicians, and nurses through direct sales force, distributors, original equipment manufacturer partners, or custom procedure tray manufacturers. The company was incorporated in 1987 and is headquartered in South Jordan, Utah.