Critical Survey: Pro-Dex (NASDAQ:PDEX) vs. Henry Schein (NASDAQ:HSIC)

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

Valuation and Earnings

This table compares Pro-Dex and Henry Schein”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pro-Dex	$70.23 million	1.50	$8.98 million	$3.35	9.66
Henry Schein	$12.94 billion	0.67	$390.00 million	$3.16	22.79

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

Institutional & Insider Ownership

15.3% of Pro-Dex shares are owned by institutional investors. Comparatively, 96.6% of Henry Schein shares are owned by institutional investors. 45.9% of Pro-Dex shares are owned by company insiders. Comparatively, 1.1% of Henry Schein shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Pro-Dex has a beta of -0.04, indicating that its share price is 104% less volatile than the S&P 500. Comparatively, Henry Schein has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Pro-Dex and Henry Schein, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pro-Dex	0	1	1	0	2.50
Henry Schein	1	8	5	0	2.29

Pro-Dex presently has a consensus price target of $56.00, indicating a potential upside of 73.11%. Henry Schein has a consensus price target of $76.08, indicating a potential upside of 5.65%. Given Pro-Dex’s stronger consensus rating and higher probable upside, equities analysts plainly believe Pro-Dex is more favorable than Henry Schein.

Profitability

This table compares Pro-Dex and Henry Schein’s 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%
Henry Schein	3.05%	14.36%	5.52%

Summary

Pro-Dex beats Henry Schein on 8 of the 14 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 Henry Schein

Henry Schein, Inc. provides health care products and services to dental practitioners, laboratories, physician practices, and ambulatory surgery centers, government, institutional health care clinics, and other alternate care clinics worldwide. It operates through two segments, Health Care Distribution, and Technology and Value-Added Services. The Health Care Distribution segment offers dental products, including infection-control products, handpieces, preventatives, impression materials, composites, anesthetics, teeth, dental implants, gypsum, acrylics, articulators, abrasives, dental chairs, delivery units and lights, X-ray supplies and equipment, personal protective equipment, and high-tech and digital restoration equipment, as well as equipment repair services. This segment also provides medical products, such as branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products, X-ray products, equipment, and vitamins. The Technology and Value-Added Services segment offers software, technology, and other value-added services that include practice management software systems for dental and medical practitioners; and value-added practice solutions comprising practice consultancy, education, revenue cycle management and financial services, e-services, practice technology, and network and hardware services, as well as consulting, and continuing education services. Henry Schein, Inc. was founded in 1932 and is headquartered in Melville, New York.