Analyzing Lifevantage (NASDAQ:LFVN) & Pro-Dex (NASDAQ:PDEX)

Lifevantage (NASDAQ:LFVN) and Pro-Dex (NASDAQ:PDEX) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.

Valuation and Earnings

This table compares Lifevantage and Pro-Dex”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lifevantage	$228.88 million	0.37	$9.81 million	$0.77	8.60
Pro-Dex	$70.23 million	1.49	$8.98 million	$3.35	9.58

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lifevantage	4.29%	33.75%	15.26%
Pro-Dex	13.48%	26.67%	14.95%

Insider and Institutional Ownership

35.3% of Lifevantage shares are owned by institutional investors. Comparatively, 15.3% of Pro-Dex shares are owned by institutional investors. 22.0% of Lifevantage shares are owned by insiders. Comparatively, 45.9% of Pro-Dex shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Lifevantage has a beta of 0.22, indicating that its stock price is 78% less volatile than the S&P 500. Comparatively, Pro-Dex has a beta of -0.04, indicating that its stock price is 104% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Lifevantage and Pro-Dex, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lifevantage	0	1	2	0	2.67
Pro-Dex	0	1	1	0	2.50

Lifevantage currently has a consensus target price of $23.50, suggesting a potential upside of 254.98%. Pro-Dex has a consensus target price of $56.00, suggesting a potential upside of 74.51%. Given Lifevantage’s stronger consensus rating and higher probable upside, analysts plainly believe Lifevantage is more favorable than Pro-Dex.

Summary

Lifevantage beats Pro-Dex on 9 of the 14 factors compared between the two stocks.

About Lifevantage

LifeVantage Corporation engages in the identification, research, development, formulation, and sale of advanced nutrigenomic activators, dietary supplements, nootropics, pre- and pro-biotics, weight management, skin and hair care, bath and body, and targeted relief products. It offers Protandim, a dietary supplement; LifeVantage Omega+, a dietary supplement that combines DHA and EPA Omega-3 fatty acids, Omega-7 fatty acids, and vitamin D3; LifeVantage ProBio, a dietary supplement to support gut health; PhysIQ, a weight management system; LifeVantage IC Bright, a supplement to support eye and brain health, reduce eye fatigue and strain, supports cognitive functions, and support normal sleep patterns; Petandim for Dogs, a supplement to combat oxidative stress in dogs; and Axio, a nootropic energy drink mix. The company also provides anti-aging skin care products, including liquid collagen, facial cleansers, perfecting lotions, eye serums, anti-aging creams, hand creams, beauty serum, as well as hair care products, such as invigorating shampoos, nourishing conditioners, and scalp serums under the LifeVantage TrueScience brand name. In addition, it offers bath and body, and targeted relief products, such as body lotion, body wash, body butter, deodorant, soothing balm, and body rub under the TrueScience brand name. It sells its products through its website and network of independent distributors in the United States, Mexico, Japan, Australia, Hong Kong, Canada, Thailand, the United Kingdom, the Netherlands, Germany, Taiwan, Austria, Spain, Ireland, Belgium, New Zealand, Singapore, and the Philippines. The company was founded in 2003 and is headquartered in Lehi, Utah.

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.