Analyzing Precision Optics (POCI) and Its Rivals

Precision Optics (NASDAQ:POCI) is one of 511 publicly-traded companies in the “Healthcare Equipment & Supplies” industry, but how does it weigh in compared to its rivals? We will compare Precision Optics to similar companies based on the strength of its earnings, risk, profitability, analyst recommendations, dividends, valuation and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Precision Optics	-11.51%	-23.92%	-13.05%
Precision Optics Competitors	-278.23%	-150.06%	-21.87%

Risk & Volatility

Precision Optics has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500. Comparatively, Precision Optics’ rivals have a beta of 2.56, indicating that their average stock price is 156% more volatile than the S&P 500.

Earnings and Valuation

This table compares Precision Optics and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Precision Optics	$31.53 million	-$3.63 million	-10.15
Precision Optics Competitors	$1.89 billion	$138.79 million	10.90

Precision Optics’ rivals have higher revenue and earnings than Precision Optics. Precision Optics is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

13.7% of Precision Optics shares are owned by institutional investors. Comparatively, 40.6% of shares of all “Healthcare Equipment & Supplies” companies are owned by institutional investors. 12.7% of Precision Optics shares are owned by insiders. Comparatively, 14.9% of shares of all “Healthcare Equipment & Supplies” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Precision Optics and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Precision Optics	1	0	0	0	1.00
Precision Optics Competitors	4257	10484	18211	824	2.46

As a group, “Healthcare Equipment & Supplies” companies have a potential upside of 22.78%. Given Precision Optics’ rivals stronger consensus rating and higher possible upside, analysts plainly believe Precision Optics has less favorable growth aspects than its rivals.

Summary

Precision Optics rivals beat Precision Optics on 10 of the 13 factors compared.

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.