Precision Optics (NASDAQ:POCI – Get Free Report) and IRIDEX (NASDAQ:IRIX – Get Free Report) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.
Earnings and Valuation
This table compares Precision Optics and IRIDEX”s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Precision Optics | $19.10 million | 1.65 | -$2.95 million | ($0.62) | -8.02 |
IRIDEX | $51.87 million | 0.52 | -$9.57 million | ($0.67) | -2.42 |
Precision Optics has higher earnings, but lower revenue than IRIDEX. Precision Optics is trading at a lower price-to-earnings ratio than IRIDEX, indicating that it is currently the more affordable of the two stocks.
Profitability
Net Margins | Return on Equity | Return on Assets | |
Precision Optics | -20.01% | -35.51% | -21.67% |
IRIDEX | -22.79% | -192.95% | -33.97% |
Analyst Recommendations
This is a summary of current recommendations and price targets for Precision Optics and IRIDEX, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Precision Optics | 0 | 0 | 0 | 0 | 0.00 |
IRIDEX | 0 | 1 | 0 | 0 | 2.00 |
IRIDEX has a consensus price target of $2.00, indicating a potential upside of 23.46%. Given IRIDEX’s stronger consensus rating and higher probable upside, analysts clearly believe IRIDEX is more favorable than Precision Optics.
Institutional & Insider Ownership
13.7% of Precision Optics shares are held by institutional investors. Comparatively, 20.1% of IRIDEX shares are held by institutional investors. 16.3% of Precision Optics shares are held by insiders. Comparatively, 7.3% of IRIDEX shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
Precision Optics has a beta of 0.27, suggesting that its share price is 73% less volatile than the S&P 500. Comparatively, IRIDEX has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500.
Summary
Precision Optics beats IRIDEX on 7 of the 13 factors compared between the two stocks.
About Precision Optics
Precision Optics Corporation, Inc. designs, develops, manufactures, and sells specialized optical and illumination systems and related components primarily in the United States and the European Economic Area. It offers medical instrumentation products, including endoscopes and endocouplers, as well as other custom imaging and illumination products, such as Microprecision lenses and micro medical cameras, and 3D endoscopes for use in minimally invasive surgical procedures by hospitals and physicians. The company also provides components and assemblies for industrial and military use. It markets its products to medical device companies. The company was incorporated in 1982 and is based in Gardner, Massachusetts.
About IRIDEX
IRIDEX Corporation, an ophthalmic medical technology company, provides therapeutic based laser systems, delivery devices, and consumable instrumentation to treat sight-threatening eye diseases in ophthalmology. It offers laser consoles, such as Cyclo G6 laser system for use in the treatment of glaucoma; IQ 532 and IQ 577 laser systems, which are used for the treatment of retinal disorders; and OcuLight TX, OcuLight SL, OcuLight SLx, OcuLight GL, and OcuLight GLx laser photocoagulation systems that are used to treat proliferative diabetic retinopathy, macular holes, retinal tears, and detachments. The company also provides delivery devices, including TxCell scanning laser delivery system that allows the physician to perform multi-spot pattern scanning; slit lamp adapter, which allows the physician to utilize a standard slit lamp in diagnosis and treatment procedures; and laser indirect ophthalmoscope for use in procedures to treat peripheral retinal disorders. It offers MicroPulse P3 Probe, which is used with its Cylco G6 laser system to perform MicroPulse transscleral laser therapy; G-Probe, which is used in procedures to treat uncontrolled glaucoma; G-Probe and G-Probe Illuminate, which are used in procedures to treat refractory glaucoma; and EndoProbe family of products for use in vitrectomy procedures. The company serves ophthalmologists, research and teaching hospitals, government installations, surgical centers, hospitals, veterinary practices, and office clinics. It markets its products through direct and independent sales force in the United States, as well as through independent distributors internationally. The company was formerly known as IRIS Medical Instruments, Inc. and changed its name to IRIDEX Corporation in November 1995. IRIDEX Corporation was incorporated in 1989 and is headquartered in Mountain View, California.
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