Contrasting Obalon Therapeutics (NASDAQ:OBLN) & Pro-Dex (NASDAQ:PDEX)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Obalon Therapeutics -776.76% -161.38% -83.58%
Pro-Dex 15.47% 30.20% 17.23%

Volatility & Risk

Obalon Therapeutics has a beta of -1.23, indicating that its stock price is 223% less volatile than the S&P 500. Comparatively, Pro-Dex has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Obalon Therapeutics and Pro-Dex, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Obalon Therapeutics 0 0 1 0 3.00
Pro-Dex 0 0 0 0 N/A

Insider and Institutional Ownership

18.6% of Obalon Therapeutics shares are owned by institutional investors. Comparatively, 22.4% of Pro-Dex shares are owned by institutional investors. 8.1% of Obalon Therapeutics shares are owned by insiders. Comparatively, 40.8% of Pro-Dex shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Obalon Therapeutics and Pro-Dex’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Obalon Therapeutics $1.59 million 38.07 -$12.33 million N/A N/A
Pro-Dex $34.83 million 3.07 $6.11 million N/A N/A

Pro-Dex has higher revenue and earnings than Obalon Therapeutics.

Summary

Pro-Dex beats Obalon Therapeutics on 9 of the 11 factors compared between the two stocks.

About Obalon Therapeutics

Obalon Therapeutics, Inc., a vertically integrated medical device company, focuses on developing and commercializing medical devices to treat people with obesity. The company offers the Obalon Balloon System designed to provide weight loss in patients with obesity. Its Obalon Balloon System comprises of a swallowable capsule that contains an inflatable balloon attached to a microcatheter; the Obalon Navigation System console, which is a combination of hardware and software used to track and display the location of the balloon during placement; the Obalon Touch Inflation Dispenser, which is a semi-automated, hand-held inflation device used to inflate the balloon once it is placed; and a disposable canister filled with mixture of gas. Obalon Therapeutics, Inc. was incorporated in 2008 and is headquartered in Carlsbad, California.

About Pro-Dex

Pro-Dex, Inc. designs, develops, and manufactures 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 maxocranial facial markets. It also provides engineering, quality, and regulatory consulting services; and manufactures and sells rotary air motors to various industries. The company was founded in 1978 and is headquartered in Irvine, California.

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