iRadimed (NASDAQ:IRMD) versus Precision Optics (NASDAQ:POCI) Financial Comparison

Precision Optics (NASDAQ:POCI) and iRadimed (NASDAQ:IRMD) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.

Volatility and Risk

Precision Optics has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, iRadimed has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500.

Insider & Institutional Ownership

13.7% of Precision Optics shares are owned by institutional investors. Comparatively, 92.3% of iRadimed shares are owned by institutional investors. 13.0% of Precision Optics shares are owned by company insiders. Comparatively, 36.8% of iRadimed shares are owned 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Precision Optics	-32.84%	-54.03%	-32.48%
iRadimed	26.61%	23.30%	20.62%

Earnings & Valuation

This table compares Precision Optics and iRadimed”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	1.77	-$2.95 million	($0.89)	-4.96
iRadimed	$73.24 million	11.91	$19.23 million	$1.62	42.31

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Precision Optics and iRadimed, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Precision Optics	0	0	0	0	0.00
iRadimed	0	0	1	0	3.00

iRadimed has a consensus target price of $72.00, suggesting a potential upside of 5.03%. Given iRadimed’s stronger consensus rating and higher probable upside, analysts plainly believe iRadimed is more favorable than Precision Optics.

Summary

iRadimed beats Precision Optics on 14 of the 14 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 iRadimed

IRadimed Corp. engages in the development, manufacture, marketing, and distribution of Magnetic Resonance Imaging compatible medical devices. It also provides a non-magnetic Intravenous infusion pump system that is specifically designed for use during MRI procedures. The company was founded by Roger Susi in July 1992 and is headquartered in Winter Springs, FL.