Reviewing SiBone (NASDAQ:SIBN) and Precision Optics (NASDAQ:POCI)

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

Valuation & Earnings

This table compares Precision Optics and SiBone”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Precision Optics	$19.09 million	1.76	-$5.78 million	($0.92)	-4.73
SiBone	$200.93 million	3.04	-$18.90 million	($0.44)	-31.43

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

Insider & Institutional Ownership

13.7% of Precision Optics shares are held by institutional investors. Comparatively, 98.1% of SiBone shares are held by institutional investors. 14.4% of Precision Optics shares are held by company insiders. Comparatively, 4.0% of SiBone shares are held 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Precision Optics and SiBone, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Precision Optics	1	0	0	0	1.00
SiBone	1	0	6	0	2.71

SiBone has a consensus price target of $24.67, indicating a potential upside of 78.36%. Given SiBone’s stronger consensus rating and higher possible upside, analysts plainly believe SiBone is more favorable than Precision Optics.

Volatility and Risk

Precision Optics has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, SiBone has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Precision Optics	-28.33%	-60.56%	-32.67%
SiBone	-9.41%	-11.01%	-8.12%

Summary

SiBone beats Precision Optics on 11 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 SiBone

SI-BONE, Inc., a medical device company, that operate to solve musculoskeletal disorders of the sacropelvic anatomy in the United States and internationally. It offers proprietary minimally invasive surgical implant system to address sacroiliac joint dysfunction and fusion, adult deformity and degeneration, and pelvic trauma; and implantable bone products. The company also provides iFuse-3D, a titanium implant that combines the triangular cross-section of the iFuse implant with the proprietary 3D-printed porous surface and fenestrated design; iFuse-TORQ, a set of 3D-printed threaded implants designed to treat pelvic trauma; and iFuse Bedrock Granite implant provides sacroiliac fusion and sacropelvic fixation as a foundational element for segmental spinal fusion. It markets its products primarily with a direct sales force, as well as through agents and resellers. SI-BONE, Inc. was incorporated in 2008 and is headquartered in Santa Clara, California.