PAVmed (NASDAQ:PAVM – Get Free Report) and Precision Optics (NASDAQ:POCI – Get Free Report) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.
Institutional and Insider Ownership
19.9% of PAVmed shares are held by institutional investors. Comparatively, 13.7% of Precision Optics shares are held by institutional investors. 7.3% of PAVmed shares are held by insiders. Comparatively, 13.0% 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 is poised for long-term growth.
Earnings and Valuation
This table compares PAVmed and Precision Optics”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PAVmed | $2.99 million | 3.15 | $39.79 million | $1.16 | 0.37 |
| Precision Optics | $19.09 million | 1.74 | -$5.78 million | ($0.84) | -5.12 |
PAVmed has higher earnings, but lower revenue than Precision Optics. Precision Optics is trading at a lower price-to-earnings ratio than PAVmed, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
PAVmed has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Precision Optics has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations and price targets for PAVmed and Precision Optics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PAVmed | 1 | 0 | 1 | 1 | 2.67 |
| Precision Optics | 1 | 0 | 0 | 0 | 1.00 |
PAVmed presently has a consensus target price of $20.00, suggesting a potential upside of 4,563.09%. Given PAVmed’s stronger consensus rating and higher possible upside, equities research analysts plainly believe PAVmed is more favorable than Precision Optics.
Profitability
This table compares PAVmed and Precision Optics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PAVmed | 7,144.80% | N/A | -20.96% |
| Precision Optics | -30.28% | -51.33% | -31.18% |
Summary
PAVmed beats Precision Optics on 13 of the 15 factors compared between the two stocks.
About PAVmed
PAVmed Inc. focuses on acquiring, developing, and commercializing novel products that target unmet needs in the United States. The company's lead products include CarpX, a patented, single-use, disposable, and minimally invasive surgical device for use in the treatment of carpal tunnel syndrome; EsoCheck Esophageal Cell Collection Device, which consists of diagnostic test that serves as a testing tool for preventing esophageal adenocarcinoma deaths, through early detection of esophageal precancer in at-risk gastroesophageal reflux disease, including chronic heartburn and acid reflux or simply reflux in patients; and EsoGuard, a bisulfite-converted next-generation sequencing DNA assay performed on surface esophageal cells collected with EsoCheck. Its product pipeline also comprises EsoCure EsoCure Esophageal Ablation Device for treating dysplastic BE; PortIO, an implantable intraosseous vascular access device; and Veris cancer care platform. The company was formerly known as PAXmed Inc. and changed its name to PAVmed Inc. in April 2015. PAVmed Inc. was incorporated in 2014 and is headquartered in New York, New York.
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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