Analyzing LivaNova (NASDAQ:LIVN) & Precision Optics (NASDAQ:POCI)

LivaNova (NASDAQ:LIVN) and Precision Optics (NASDAQ:POCI) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of recent ratings and target prices for LivaNova and Precision Optics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LivaNova	0	4	2	0	2.33
Precision Optics	0	0	0	0	N/A

LivaNova currently has a consensus price target of $65.00, suggesting a potential upside of 21.18%. Given LivaNova’s higher probable upside, analysts plainly believe LivaNova is more favorable than Precision Optics.

Institutional & Insider Ownership

97.6% of LivaNova shares are held by institutional investors. Comparatively, 8.1% of Precision Optics shares are held by institutional investors. 0.2% of LivaNova shares are held by company insiders. Comparatively, 22.7% of Precision Optics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

LivaNova has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, Precision Optics has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500.

Profitability

This table compares LivaNova and Precision Optics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LivaNova	-8.94%	11.60%	6.12%
Precision Optics	2.07%	-3.33%	-1.79%

Valuation & Earnings

This table compares LivaNova and Precision Optics’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LivaNova	$1.02 billion	2.83	-$86.25 million	($1.82)	-29.47
Precision Optics	$15.68 million	2.40	-$930,000.00	$0.10	62.09

Precision Optics has lower revenue, but higher earnings than LivaNova. LivaNova is trading at a lower price-to-earnings ratio than Precision Optics, indicating that it is currently the more affordable of the two stocks.

Summary

LivaNova beats Precision Optics on 8 of the 13 factors compared between the two stocks.

About LivaNova

LivaNova PLC, a medical device company, designs, develops, manufactures, and sells therapeutic solutions worldwide. It operates through three segments: Cardiopulmonary, Neuromodulation, and Advanced Circulatory Support. The Cardiopulmonary segment develops, produces, and sells cardiopulmonary products, including oxygenators, heart-lung machines, autotransfusion systems, perfusion tubing systems, cannulae, connect, and other related products. The Neuromodulation segment designs, develops, and markets VNS Therapy System, an implantable device that delivers vagus nerve stimulation (VNS) therapy for the treatment of drug-resistant epilepsy, difficult-to-treat depression, and obstructive sleep apnea. It is also involved in the development and clinical testing of the VITARIA System for treating heart failure through VNS. The Advanced Circulatory Support segment develops, produces, and sells temporary life support products. It serves perfusionists, neurologists, neurosurgeons, and other physicians, as well as hospitals, other medical institutions, and healthcare providers. The company sells its products through direct sales representatives and independent distributors. It also engages in research collaboration with Verily to capture clinical biomarkers of depression. LivaNova PLC was founded in 1987 and is headquartered in London, the United Kingdom.

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.