Critical Analysis: Pro-Dex (NASDAQ:PDEX) versus IceCure Medical (NASDAQ:ICCM)

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

Analyst Recommendations

This is a summary of current ratings and price targets for IceCure Medical and Pro-Dex, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IceCure Medical	2	0	3	0	2.20
Pro-Dex	0	0	2	1	3.33

IceCure Medical currently has a consensus price target of $52.50, indicating a potential upside of 2,578.57%. Pro-Dex has a consensus price target of $74.00, indicating a potential upside of 2.00%. Given IceCure Medical’s higher possible upside, equities analysts clearly believe IceCure Medical is more favorable than Pro-Dex.

Institutional & Insider Ownership

0.6% of IceCure Medical shares are held by institutional investors. Comparatively, 15.3% of Pro-Dex shares are held by institutional investors. 2.4% of IceCure Medical shares are held by company insiders. Comparatively, 45.9% of Pro-Dex shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares IceCure Medical 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
IceCure Medical	$3.38 million	1.99	-$15.06 million	($8.52)	-0.23
Pro-Dex	$77.55 million	2.99	$13.66 million	$4.13	17.57

Pro-Dex has higher revenue and earnings than IceCure Medical. IceCure Medical 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 IceCure Medical and Pro-Dex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IceCure Medical	-427.67%	-174.26%	-112.58%
Pro-Dex	17.62%	25.13%	16.02%

Volatility and Risk

IceCure Medical has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500. Comparatively, Pro-Dex has a beta of 0.06, suggesting that its share price is 94% less volatile than the S&P 500.

Summary

Pro-Dex beats IceCure Medical on 12 of the 15 factors compared between the two stocks.

About IceCure Medical

IceCure Medical Ltd, a commercial stage medical device company, engages in the research, development, and marketing of cryoablation systems, disposables, and technologies for treating tumors. The company offers ProSense system, a single probe system for the treatment of tumors, as well as associated disposables; and IceSense3 system for ablation indications to urology, oncology, dermatology, gynecology, general surgery, thoracic surgery, and proctology. It also develops XSense system, a single probe system; and MultiSense, a multi probe system for the treatment of multiple and larger tumors. The company was incorporated in 2006 and is headquartered in Caesarea, Israel.

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.