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

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

Institutional & Insider Ownership

15.3% of Pro-Dex shares are held by institutional investors. 24.3% of Lancer Orthodontics shares are held by company insiders. Comparatively, 47.5% of Pro-Dex shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lancer Orthodontics	0	0	0	0	0.00
Pro-Dex	0	0	1	0	3.00

Pro-Dex has a consensus price target of $56.00, suggesting a potential upside of 66.72%. Given Pro-Dex’s stronger consensus rating and higher probable upside, analysts clearly believe Pro-Dex is more favorable than Lancer Orthodontics.

Earnings and Valuation

This table compares Lancer Orthodontics and Pro-Dex”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lancer Orthodontics	N/A	N/A	N/A	N/A	N/A
Pro-Dex	$66.59 million	1.64	$8.98 million	$2.70	12.44

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

Volatility & Risk

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

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.