Head-To-Head Comparison: Tactile Systems Technology (NASDAQ:TCMD) versus Pro-Dex (NASDAQ:PDEX)
by Danessa Lincoln · The Markets DailyPro-Dex (NASDAQ:PDEX – Get Free Report) and Tactile Systems Technology (NASDAQ:TCMD – Get Free Report) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.
Insider and Institutional Ownership
15.3% of Pro-Dex shares are held by institutional investors. Comparatively, 83.4% of Tactile Systems Technology shares are held by institutional investors. 42.6% of Pro-Dex shares are held by company insiders. Comparatively, 1.0% of Tactile Systems Technology shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings and price targets for Pro-Dex and Tactile Systems Technology, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Pro-Dex | 0 | 0 | 1 | 0 | 3.00 |
| Tactile Systems Technology | 0 | 0 | 0 | 1 | 4.00 |
Pro-Dex currently has a consensus price target of $30.00, indicating a potential upside of 2.08%. Tactile Systems Technology has a consensus price target of $23.00, indicating a potential upside of 62.43%. Given Tactile Systems Technology’s stronger consensus rating and higher possible upside, analysts plainly believe Tactile Systems Technology is more favorable than Pro-Dex.
Earnings and Valuation
This table compares Pro-Dex and Tactile Systems Technology”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Pro-Dex | $53.84 million | 1.87 | $2.13 million | $0.58 | 50.67 |
| Tactile Systems Technology | $274.42 million | 1.23 | $28.51 million | $1.38 | 10.26 |
Tactile Systems Technology has higher revenue and earnings than Pro-Dex. Tactile Systems Technology 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 Pro-Dex and Tactile Systems Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Pro-Dex | 3.95% | 6.82% | 4.17% |
| Tactile Systems Technology | 11.57% | 16.94% | 11.60% |
Volatility and Risk
Pro-Dex has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500. Comparatively, Tactile Systems Technology has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.
Summary
Tactile Systems Technology beats Pro-Dex on 11 of the 15 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 Tactile Systems Technology
Tactile Systems Technology, Inc., a medical technology company, develops and provides medical devices to treat underserved chronic diseases in the United States. It offers Flexitouch Plus system, a pneumatic compression device for the treatment of lymphedema in the home setting; and Entre Plus System, a portable pneumatic compression device for the at-home treatment of venous disorders, such as lymphedema and chronic venous insufficiency, including venous leg ulcers. The company also provides Kylee, a mobile application to help patients learn about lymphedema, track their symptoms, and treatment, as well as to share their progress with their doctor; and AffloVest, a portable high frequency chest wall oscillation vest to treat patients with retained pulmonary secretions resulting from bronchiectasis, cystic fibrosis, and various neuromuscular disorders. Tactile Systems Technology, Inc. was incorporated in 1995 and is headquartered in Minneapolis, Minnesota.