Comparing Retractable Technologies (NYSE:RVP) and Pro-Dex (NASDAQ:PDEX)

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

Analyst Ratings

This is a breakdown of current ratings for Retractable Technologies and Pro-Dex, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Retractable Technologies	0	0	0	0	N/A
Pro-Dex	0	0	0	0	N/A

Institutional and Insider Ownership

7.6% of Retractable Technologies shares are held by institutional investors. Comparatively, 15.3% of Pro-Dex shares are held by institutional investors. 55.0% of Retractable Technologies shares are held by company insiders. Comparatively, 42.6% of Pro-Dex shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Retractable Technologies	-16.08%	-6.86%	-3.78%
Pro-Dex	5.59%	8.97%	5.40%

Volatility & Risk

Retractable Technologies has a beta of 2.11, suggesting that its stock price is 111% more volatile than the S&P 500. Comparatively, Pro-Dex has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.

Valuation & Earnings

This table compares Retractable Technologies and Pro-Dex’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Retractable Technologies	$43.60 million	0.72	-$7.01 million	($0.24)	-4.38
Pro-Dex	$46.09 million	1.43	$7.07 million	$0.75	25.04

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

Summary

Pro-Dex beats Retractable Technologies on 9 of the 11 factors compared between the two stocks.

About Retractable Technologies

Retractable Technologies, Inc. designs, develops, manufactures, and markets safety syringes and other safety medical products for the healthcare profession in the United States, rest of North and South America, and internationally. The company offers VanishPoint insulin syringes; tuberculin, insulin, and allergy antigen syringes; small diameter tube adapters; blood collection tube holders; allergy trays; IV safety catheters; Patient Safe syringes and Luer Caps; VanishPoint blood collection sets; EasyPoint needles; and VanishPoint autodisable syringes. It distributes its products through general line and specialty distributors, as well as through international distributors; and a direct marketing network. The company was incorporated in 1994 and is headquartered in Little Elm, Texas.

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.