STAAR Surgical (NASDAQ:STAA) & Pro-Dex (NASDAQ:PDEX) Head to Head Analysis

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

Institutional and Insider Ownership

15.3% of Pro-Dex shares are owned by institutional investors. Comparatively, 96.7% of STAAR Surgical shares are owned by institutional investors. 45.9% of Pro-Dex shares are owned by company insiders. Comparatively, 0.6% of STAAR Surgical shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Pro-Dex and STAAR Surgical”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	$66.59 million	1.92	$8.98 million	$3.35	11.68
STAAR Surgical	$230.59 million	4.13	-$20.21 million	($1.95)	-9.82

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Pro-Dex and STAAR Surgical, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pro-Dex	0	1	1	0	2.50
STAAR Surgical	2	10	0	0	1.83

Pro-Dex presently has a consensus price target of $56.00, suggesting a potential upside of 43.15%. STAAR Surgical has a consensus price target of $20.68, suggesting a potential upside of 8.04%. Given Pro-Dex’s stronger consensus rating and higher probable upside, equities analysts clearly believe Pro-Dex is more favorable than STAAR Surgical.

Risk and Volatility

Pro-Dex has a beta of -0.05, meaning that its stock price is 105% less volatile than the S&P 500. Comparatively, STAAR Surgical has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pro-Dex	15.94%	23.64%	13.73%
STAAR Surgical	-41.79%	-16.06%	-12.40%

Summary

Pro-Dex beats STAAR Surgical on 10 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 STAAR Surgical

STAAR Surgical Company, together with its subsidiaries, designs, develops, manufactures, markets, and sells implantable lenses for the eye, and companion delivery systems to deliver the lenses into the eye. The company provides implantable Collamer lens product family (ICLs) to treat visual disorders, such as myopia, hyperopia, astigmatism, and presbyopia. It markets its products to health care providers, including ophthalmic surgeons, vision and surgical centers, hospitals, government facilities, and distributors, as well as products are primarily used by ophthalmologists. The company sells its products directly through its sales representatives in the United States, Japan, Germany, Spain, Canada, the United Kingdom, and Singapore, as well as through own representatives and independent distributors in China, Korea, India, France, Benelux, Italy, and internationally. STAAR Surgical Company was incorporated in 1982 and is headquartered in Lake Forest, California.