Head-To-Head Comparison: Precision Optics (NASDAQ:POCI) vs. Vivani Medical (NASDAQ:VANI)

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Vivani Medical and Precision Optics, as provided by MarketBeat.

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

Vivani Medical presently has a consensus price target of $3.00, suggesting a potential upside of 150.00%. Given Vivani Medical’s stronger consensus rating and higher probable upside, equities analysts plainly believe Vivani Medical is more favorable than Precision Optics.

Insider and Institutional Ownership

6.8% of Vivani Medical shares are held by institutional investors. Comparatively, 13.7% of Precision Optics shares are held by institutional investors. 44.3% of Vivani Medical shares are held by insiders. Comparatively, 16.3% of Precision Optics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vivani Medical	N/A	-102.42%	-49.21%
Precision Optics	-20.01%	-35.51%	-21.67%

Volatility and Risk

Vivani Medical has a beta of 3.23, suggesting that its stock price is 223% more volatile than the S&P 500. Comparatively, Precision Optics has a beta of 0.27, suggesting that its stock price is 73% less volatile than the S&P 500.

Earnings & Valuation

This table compares Vivani Medical and Precision Optics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vivani Medical	N/A	N/A	-$25.65 million	($0.45)	-2.67
Precision Optics	$19.10 million	1.63	-$2.95 million	($0.62)	-7.89

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

Summary

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

About Vivani Medical

Vivani Medical, Inc., a clinical stage company, develops various implants that treat chronic diseases with high unmet medical need. It engages in developing a portfolio of miniature drug implants to deliver minimally fluctuating drug profiles; and implantable visual prostheses devices to deliver useful artificial vision to blind individuals. The company is headquartered in Emeryville, California.

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.