Comparing Precision Optics (NASDAQ:POCI) & Integra LifeSciences (NASDAQ:IART)
by Tristan Rich · The Markets DailyIntegra LifeSciences (NASDAQ:IART – Get Free Report) and Precision Optics (NASDAQ:POCI – Get Free Report) are both small-cap healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Integra LifeSciences and Precision Optics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Integra LifeSciences | 2 | 5 | 1 | 0 | 1.88 |
| Precision Optics | 1 | 0 | 0 | 0 | 1.00 |
Integra LifeSciences currently has a consensus target price of $16.71, indicating a potential upside of 26.53%. Given Integra LifeSciences’ stronger consensus rating and higher probable upside, research analysts clearly believe Integra LifeSciences is more favorable than Precision Optics.
Volatility and Risk
Integra LifeSciences has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, Precision Optics has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500.
Profitability
This table compares Integra LifeSciences and Precision Optics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Integra LifeSciences | -0.44% | 18.30% | 5.30% |
| Precision Optics | -11.51% | -23.92% | -13.05% |
Earnings & Valuation
This table compares Integra LifeSciences and Precision Optics”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Integra LifeSciences | $1.64 billion | 0.63 | -$516.47 million | ($0.09) | -146.78 |
| Precision Optics | $31.53 million | 1.50 | -$3.63 million | ($0.46) | -9.39 |
Precision Optics has lower revenue, but higher earnings than Integra LifeSciences. Integra LifeSciences is trading at a lower price-to-earnings ratio than Precision Optics, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
84.8% of Integra LifeSciences shares are held by institutional investors. Comparatively, 13.7% of Precision Optics shares are held by institutional investors. 3.8% of Integra LifeSciences shares are held by insiders. Comparatively, 14.4% of Precision Optics shares are held by 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.
Summary
Integra LifeSciences beats Precision Optics on 10 of the 14 factors compared between the two stocks.
About Integra LifeSciences
Integra LifeSciences Holdings Corporation manufactures and sells surgical instruments, neurosurgical products, and wound care products for use in neurosurgery, neurocritical care, and otolaryngology. It operates in two segments, Codman Specialty Surgical and Tissue Technologies. The company offers neurosurgery and neuro critical care products, including tissue ablation equipment, dural repair products, cerebral spinal fluid management devices, intracranial monitoring equipment, and cranial stabilization equipment; and surgical headlamps and instrumentation, as well as after-market services. It also sells instrument patterns, and surgical and lighting products to hospitals and surgery centers, as well as dental, podiatry, and veterinary offices. In addition, the company provides regenerative technology products for the treatment of acute wounds; and surgical tissue repair products for hernia, tendon, peripheral nerve repair and protection. Further, it offers skin and wound repair, plastics and surgical reconstruction products, bone grafts, and nerve and tendon repair products. The company offers its products directly through various sales forces and other distribution channels to the hospitals, integrated health networks, group purchasing organizations, clinicians, surgery centers, and health care providers in the United States, Europe, Asia Pacific, and internationally. Integra LifeSciences Holdings Corporation was incorporated in 1989 and is headquartered in Princeton, New Jersey.
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.