Precision Optics (NASDAQ:POCI – Get Rating) and Cutera (NASDAQ:CUTR – Get Rating) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.
Institutional & Insider Ownership
25.4% of Precision Optics shares are held by institutional investors. 22.7% of Precision Optics shares are held by insiders. Comparatively, 2.1% of Cutera shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Precision Optics and Cutera, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Precision Optics | 0 | 0 | 0 | 0 | N/A |
| Cutera | 1 | 3 | 1 | 0 | 2.00 |
Profitability
This table compares Precision Optics and Cutera’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Precision Optics | 2.07% | -3.33% | -1.79% |
| Cutera | -36.98% | -489.05% | -19.69% |
Risk & Volatility
Precision Optics has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500. Comparatively, Cutera has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500.
Valuation and Earnings
This table compares Precision Optics and Cutera’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Precision Optics | $20.42 million | 1.73 | -$930,000.00 | $0.10 | 62.70 |
| Cutera | $249.38 million | 1.41 | -$82.34 million | ($4.81) | -3.69 |
Precision Optics has higher earnings, but lower revenue than Cutera. Cutera is trading at a lower price-to-earnings ratio than Precision Optics, indicating that it is currently the more affordable of the two stocks.
Summary
Precision Optics beats Cutera 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.
About Cutera
Cutera, Inc. engages in the provision of laser and energy-based aesthetic systems for practitioners. It operates through the following segments: United States, Japan, Asia excluding Japan, Europe, and Rest of the World. Its products include enlighten, excel HR, excel V+, secret Pro, Juliet, secret RF, and xeo. The company was founded by David A. Gollnick in August 1998 and is headquartered in Brisbane, CA.
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