Pro-Dex (NASDAQ:PDEX) versus Beauty Health (NASDAQ:SKIN) Critical Contrast

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Beauty Health and Pro-Dex, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beauty Health	3	7	2	0	1.92
Pro-Dex	0	0	0	0	N/A

Beauty Health presently has a consensus target price of $5.79, suggesting a potential upside of 416.58%. Given Beauty Health’s higher probable upside, equities research analysts plainly believe Beauty Health is more favorable than Pro-Dex.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Beauty Health	-20.48%	-0.02%	N/A
Pro-Dex	4.13%	6.50%	4.01%

Valuation and Earnings

This table compares Beauty Health 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
Beauty Health	$393.12 million	0.35	-$100.12 million	($0.70)	-1.60
Pro-Dex	$49.46 million	1.34	$7.07 million	$0.58	33.31

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

Institutional and Insider Ownership

93.3% of Beauty Health shares are held by institutional investors. Comparatively, 15.3% of Pro-Dex shares are held by institutional investors. 41.0% of Beauty Health shares are held by insiders. Comparatively, 42.6% of Pro-Dex shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Beauty Health has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Pro-Dex has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500.

Summary

Pro-Dex beats Beauty Health on 8 of the 13 factors compared between the two stocks.

About Beauty Health

The Beauty Health Company designs, develops, manufactures, markets, and sells aesthetic technologies and products worldwide. The company's flagship product includes HydraFacial that enhance the skin to cleanse, extract, and hydrate the skin with proprietary solutions and serums. Its products also comprise Syndeo, a Delivery System designs to connects providers to the consumer's preferences to create a more personalized experience; consumables, such as single-use tips, solutions, and serums used to provide a hydrafacial treatment; SkinStylus SteriLock Microsystem, a microneedling device used for the treatment of enhancing appearance of surgical or traumatic hypertrophic scars on the abdomen and facial acne scarring in Fitzpatrick skin types I, II, and III; and Keravive, a treatment for scalp health. The company was founded in 1997 and is headquartered in Long Beach, California.

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.