Precision Optics (OTCMKTS:PEYE) and LivaNova (NASDAQ:LIVN) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitability, earnings and dividends.
Institutional & Insider Ownership
8.6% of Precision Optics shares are owned by institutional investors. Comparatively, 96.8% of LivaNova shares are owned by institutional investors. 24.7% of Precision Optics shares are owned by company insiders. Comparatively, 0.4% of LivaNova shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Precision Optics has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, LivaNova has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500.
Earnings and Valuation
This table compares Precision Optics and LivaNova’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Precision Optics||$10.68 million||3.53||-$100,000.00||($0.05)||-44.99|
|LivaNova||$934.20 million||4.83||-$345.01 million||($8.31)||-10.20|
Precision Optics has higher earnings, but lower revenue than LivaNova. Precision Optics is trading at a lower price-to-earnings ratio than LivaNova, indicating that it is currently the more affordable of the two stocks.
This table compares Precision Optics and LivaNova’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and recommmendations for Precision Optics and LivaNova, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
LivaNova has a consensus target price of $104.20, indicating a potential upside of 22.91%. Given LivaNova’s higher probable upside, analysts plainly believe LivaNova is more favorable than Precision Optics.
LivaNova beats Precision Optics on 9 of the 13 factors compared between the two stocks.
About Precision Optics
Precision Optics Corp., engages in the design, development, manufacture, and selling of optical instruments. Its products include microprecision lenses and micro medical camera, 3D endoscope, and robotic surgery systems. The company was founded by Richard E. Forkey in December 1982 and is headquartered in Gardner, MA.
LivaNova Plc is a global medical technology company, which engages in the development and delivery of therapeutic solutions for the benefit of patients, healthcare professionals, and healthcare systems. It operates through the Cardiovascular and Neuromodulation segments. The Cardiovascular segment develops, produces, and sells cardiopulmonary products, heart valves, and circulatory support products. The Neuromodulation segment designs, develops, and markets Neuromodulation therapy for the treatment of drug-resistant epilepsy, difficult-to-treat depression (DTD), and obstructive sleep apnea. The company was founded in 1987 and is headquartered in London, the United Kingdom.
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