908 Devices (NASDAQ:MASS – Get Free Report) and Precision Optics (NASDAQ:POCI – Get Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.
Profitability
This table compares 908 Devices and Precision Optics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| 908 Devices | -7.17% | -22.31% | -16.90% |
| Precision Optics | -30.28% | -51.33% | -31.18% |
Earnings & Valuation
This table compares 908 Devices and Precision Optics”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| 908 Devices | $65.05 million | 3.53 | -$72.21 million | ($0.11) | -57.73 |
| Precision Optics | $21.58 million | 1.71 | -$5.78 million | ($0.84) | -5.70 |
Precision Optics has lower revenue, but higher earnings than 908 Devices. 908 Devices is trading at a lower price-to-earnings ratio than Precision Optics, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
908 Devices has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500. Comparatively, Precision Optics has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and target prices for 908 Devices and Precision Optics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| 908 Devices | 1 | 0 | 2 | 1 | 2.75 |
| Precision Optics | 1 | 0 | 0 | 0 | 1.00 |
908 Devices currently has a consensus price target of $9.00, suggesting a potential upside of 41.73%. Given 908 Devices’ stronger consensus rating and higher possible upside, equities analysts clearly believe 908 Devices is more favorable than Precision Optics.
Insider and Institutional Ownership
88.1% of 908 Devices shares are owned by institutional investors. Comparatively, 13.7% of Precision Optics shares are owned by institutional investors. 23.7% of 908 Devices shares are owned by company insiders. Comparatively, 13.0% of Precision Optics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
908 Devices beats Precision Optics on 13 of the 15 factors compared between the two stocks.
About 908 Devices
908 Devices Inc., a commercial-stage technology company, provides various purpose-built handheld and desktop mass spectrometry devices to interrogate unknown and invisible materials in life sciences research, bioprocessing, pharma/biopharma, forensics, and adjacent markets. The company's products include MX908, a handheld, battery-powered, and Mass Spec device that is designed for rapid analysis of solid, liquid, vapor, and aerosol materials of unknown identity; Rebel, a small desktop analyzer that provides real-time information on the extracellular environment in bioprocesses; and Maverick, an optical in-line analyzer that offers real-time monitoring and control of multiple bioprocess parameters, including glucose, lactate, and total biomass in mammalian cell cultures, as well as provides process fingerprint data to support large-scale efforts in predictive bioprocess modeling. Its products also comprise Maven and Trace C2, an online device for bioprocess monitoring and control; and ZipChip solution, a plug-and-play, high-resolution separation platform that optimizes Mass Spec sample analysis. The company operates in the United States, Europe, the Middle East, Africa, the Asia Pacific, and rest of the Americas. 908 Devices Inc. was incorporated in 2012 and is headquartered in Boston, Massachusetts.
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.
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