Critical Review: Pro-Dex (NASDAQ:PDEX) & Remedent (OTCMKTS:REMI)

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

Profitability

This table compares Pro-Dex and Remedent’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%
Remedent	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and recommmendations for Pro-Dex and Remedent, as reported by MarketBeat.com.

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

Pro-Dex currently has a consensus target price of $56.00, suggesting a potential upside of 95.05%. Given Pro-Dex’s stronger consensus rating and higher probable upside, analysts clearly believe Pro-Dex is more favorable than Remedent.

Earnings & Valuation

This table compares Pro-Dex and Remedent”s gross revenue, earnings per share 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
Remedent	$990,000.00	N/A	-$270,000.00	($0.01)	-0.02

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

Insider & Institutional Ownership

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

Volatility & Risk

Pro-Dex has a beta of -0.11, suggesting that its stock price is 111% less volatile than the S&P 500. Comparatively, Remedent has a beta of -0.3, suggesting that its stock price is 130% less volatile than the S&P 500.

Summary

Pro-Dex beats Remedent on 13 of the 13 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 Remedent

Remedent, Inc. researches, designs, develops, manufactures, and distributes oral care and cosmetic dentistry products in the United States and internationally. It primarily provides professional veneers and teeth whitening products for professional and over-the-counter use. The company also offers River8, a prefab veneer that enables the dentist to find the right combination of teeth for a patient with minor reshaping. In addition, it provides GlamSmile veneers, which are ultra-thin claddings attached to the front of the patient’s teeth. Further, the company offers SmileMe Mirror, an integrated marketing concept for the dental practice that enables dentists to offer smile consultation in approximately 10 minutes; SmileSketch, a simulation software to make a sketch of what the patient could look like; and various Treatment Pages to explain the benefits of certain treatments, as well as Condor, an intra-oral 3D scanner. Additionally, it provides dental implant solutions and treatment concepts. The company sells its products through internal sales force and third party distributors. Remedent, Inc. was incorporated in 1986 and is headquartered in Ghent, Belgium.