AxoGen (NASDAQ:AXGN – Get Free Report) and Precision Optics (NASDAQ:POCI – Get Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, profitability, institutional ownership, analyst recommendations, valuation, dividends and risk.
Profitability
This table compares AxoGen and Precision Optics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AxoGen | -17.01% | -15.23% | -7.88% |
| Precision Optics | 2.07% | -3.33% | -1.79% |
Analyst Ratings
This is a breakdown of recent ratings and price targets for AxoGen and Precision Optics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AxoGen | 0 | 0 | 3 | 0 | 3.00 |
| Precision Optics | 0 | 0 | 0 | 0 | N/A |
Valuation & Earnings
This table compares AxoGen and Precision Optics’ gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AxoGen | $138.58 million | 2.60 | -$28.95 million | ($0.58) | -14.52 |
| Precision Optics | $20.81 million | 1.82 | -$930,000.00 | $0.10 | 62.30 |
Precision Optics has lower revenue, but higher earnings than AxoGen. AxoGen 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
73.5% of AxoGen shares are owned by institutional investors. Comparatively, 17.4% of Precision Optics shares are owned by institutional investors. 7.2% of AxoGen shares are owned by insiders. Comparatively, 22.7% of Precision Optics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk and Volatility
AxoGen has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, Precision Optics has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500.
Summary
Precision Optics beats AxoGen on 7 of the 13 factors compared between the two stocks.
About AxoGen
AxoGen, Inc., together with its subsidiaries, develops and markets technologies for peripheral nerve regeneration and repair worldwide. The company's products include Avance Nerve Graft, a biologically active off-the-shelf processed human nerve allograft for bridging severed peripheral nerves without the comorbidities associated with a second surgical site; AxoGuard Nerve Connector, a porcine submucosa extracellular matrix (ECM) coaptation aid for tensionless repair of severed peripheral nerves; and AxoGuard Nerve Protector, a porcine submucosa ECM product that is used to wrap and protect damaged peripheral nerves, as well as reinforces the nerve reconstruction while preventing soft tissue attachments. Its products also comprise Axoguard Nerve Cap, a porcine submucosa ECM product that is used to protect a peripheral nerve end, as well as separates the nerve from the surrounding environment to reduce the development of symptomatic or painful neuroma; and AxoTouch two-point discriminator, a tool that is used for measuring the innervation density of surface area of the skin. The company provides its products to hospitals, surgery centers, and military hospitals, plastic reconstructive surgeons, orthopedic and plastic hand surgeons, and various oral and maxillofacial surgeons. AxoGen, Inc. is headquartered in Alachua, Florida.
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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