Critical Contrast: Escalon Medical (OTCMKTS:ESMC) vs. Pro-Dex (NASDAQ:PDEX)

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

Valuation and Earnings

This table compares Pro-Dex and Escalon Medical”s gross 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	1.51	$8.98 million	$3.35	9.73
Escalon Medical	$12.05 million	0.10	$110,000.00	N/A	N/A

Pro-Dex has higher revenue and earnings than Escalon Medical.

Profitability

This table compares Pro-Dex and Escalon Medical’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%
Escalon Medical	0.88%	7.73%	2.16%

Risk and Volatility

Pro-Dex has a beta of -0.04, indicating that its share price is 104% less volatile than the S&P 500. Comparatively, Escalon Medical has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Pro-Dex and Escalon Medical, as reported by MarketBeat.

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

Pro-Dex presently has a consensus target price of $56.00, indicating a potential upside of 71.83%. Given Pro-Dex’s stronger consensus rating and higher possible upside, analysts clearly believe Pro-Dex is more favorable than Escalon Medical.

Insider and Institutional Ownership

15.3% of Pro-Dex shares are owned by institutional investors. 45.9% of Pro-Dex shares are owned by company insiders. Comparatively, 1.9% of Escalon Medical shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Pro-Dex beats Escalon Medical on 11 of the 12 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 Escalon Medical

Escalon Medical Corp. engages in the development, manufacturing, marketing, and distribution of medical devices and pharmaceuticals in the area of ophthalmology in the United States and internationally. It offers A-Scan, which provides information about the internal structure of the eye; B-Scan, a diagnostic tool that supplies information to physicians where the media within the eye are cloudy or opaque; UBM, a high frequency/high resolution ultrasound device, which provides detailed information about the anterior segment of the eye; and Pachymeter that measures the thickness of cornea. The company also provides Ispan Intraocular Gases, such as C3F8 and SF6 that are used by vitreoretinal surgeons as a temporary tamponade in detached retina surgery; and AXIS Image management system for managing ophthalmic diagnostic images through the web browser from various devices. In addition, it markets disposable surgical packs used in vitreoretinal surgery, including packs that aid surgeons in the process of injecting and extracting silicone oil. Further, the company engages in the manufacturing and distribution of patented disposable universal gas kit, which delivers the gas from the canister to the patient. It sells its products to medical institutions through independent sales representatives, network of distributors, and internal sales employees. Escalon Medical Corp. was incorporated in 1987 and is headquartered in Wayne, Pennsylvania.