Financial Review: AtriCure (NASDAQ:ATRC) vs. Pro-Dex (NASDAQ:PDEX)

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

Valuation & Earnings

This table compares AtriCure and Pro-Dex’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AtriCure $201.63 million 6.07 -$21.14 million ($0.94) -33.60
Pro-Dex $22.47 million 2.56 $1.62 million N/A N/A

Pro-Dex has lower revenue, but higher earnings than AtriCure.

Institutional and Insider Ownership

89.2% of AtriCure shares are held by institutional investors. Comparatively, 13.0% of Pro-Dex shares are held by institutional investors. 8.0% of AtriCure shares are held by company insiders. Comparatively, 41.7% of Pro-Dex shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

AtriCure has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500. Comparatively, Pro-Dex has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for AtriCure and Pro-Dex, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AtriCure 0 0 5 0 3.00
Pro-Dex 0 0 1 0 3.00

AtriCure currently has a consensus price target of $37.75, indicating a potential upside of 19.54%. Pro-Dex has a consensus price target of $20.00, indicating a potential upside of 42.86%. Given Pro-Dex’s higher probable upside, analysts clearly believe Pro-Dex is more favorable than AtriCure.

Profitability

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

Net Margins Return on Equity Return on Assets
AtriCure -9.46% -13.06% -8.91%
Pro-Dex 12.98% 19.69% 14.47%

Summary

Pro-Dex beats AtriCure on 8 of the 12 factors compared between the two stocks.

AtriCure Company Profile

AtriCure, Inc. develops, manufactures, and sells devices for the surgical ablation of cardiac tissue and systems to medical centers in the United States and internationally. The company offers Isolator Synergy and Isolator Synergy Access clamps for the treatment of persistent and long-standing persistent atrial fibrillation concomitant to other open-heart surgical procedures; EPi-Sense guided coagulation system used for the coagulation of tissue; and COBRA Fusion surgical ablation system to combine bipolar temperature-controlled radio frequency energy control with monopolar energy. It also provides multifunctional pens that allow surgeons to evaluate cardiac arrhythmias, perform temporary cardiac pacing, sensing, and stimulation and ablate cardiac tissue with the same device; and linear ablation devices, which enable users to make longer linear lines of ablation. In addition, the company offers cryoICE cryoablation system used to ablate cardiac tissue for the treatment of cardiac arrhythmias; AtriClip system used to occlude the left atrial appendage by mechanically clamping the appendage; and CryoICE CRYO2 cryoablation system to apply cryo-energy to targeted intercostal peripheral nerves in the ribcage and temporarily relieve pain. Further, it provides Lumitip dissector to separate tissues to provide access to key anatomical structures that are targeted for ablation; Fusion Magnetic Retriever System that allows access around anatomical structures; and cardiac surgery instruments, which are used during surgical procedures for repair or replacement of certain heart valves. The company sells its products through independent distributors and direct sales personnel. The company was founded in 2000 and is headquartered in Mason, Ohio.

Pro-Dex Company Profile

Pro-Dex, Inc., together with its subsidiaries, designs, develops, and manufactures powered surgical instruments, dental instruments, and rotary air motors worldwide. It also manufactures plastic injection molds for various industries; and shavers and machined parts. In addition, it provides engineering, and quality and regulatory consulting services. The company offers its products under the name of Pro-Dex.Pro-Dex, Inc. sells its medical device products primarily to original equipment manufacturers; and dental products to dental product distributors. Its 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.

Receive News & Ratings for AtriCure Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for AtriCure and related companies with MarketBeat.com's FREE daily email newsletter.