Head-To-Head Comparison: Precision Optics (PEYE) and Digirad (DRAD)

Digirad (NASDAQ:DRAD) and Precision Optics (OTCMKTS:PEYE) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Dividends

Digirad pays an annual dividend of $0.22 per share and has a dividend yield of 29.7%. Precision Optics does not pay a dividend. Digirad has raised its dividend for 2 consecutive years.

Insider and Institutional Ownership

49.4% of Digirad shares are owned by institutional investors. 9.1% of Digirad shares are owned by insiders. Comparatively, 24.7% of Precision Optics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Digirad and Precision Optics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Digirad $118.34 million 0.13 -$35.73 million N/A N/A
Precision Optics $4.04 million 3.80 -$350,000.00 N/A N/A

Precision Optics has lower revenue, but higher earnings than Digirad.

Analyst Recommendations

This is a summary of current ratings for Digirad and Precision Optics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digirad 0 0 0 0 N/A
Precision Optics 0 0 0 0 N/A

Profitability

This table compares Digirad and Precision Optics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Digirad -18.00% -15.04% -7.26%
Precision Optics -13.59% -27.45% -7.12%

Risk and Volatility

Digirad has a beta of 2.28, indicating that its share price is 128% more volatile than the S&P 500. Comparatively, Precision Optics has a beta of 2.29, indicating that its share price is 129% more volatile than the S&P 500.

Summary

Precision Optics beats Digirad on 6 of the 11 factors compared between the two stocks.

Digirad Company Profile

Digirad Corporation provides healthcare solutions in the United States. It operates through Diagnostic Services, Mobile Healthcare, and Diagnostic Imaging segments. The Diagnostic Services segment provides nuclear and ultrasound imaging services to physicians who perform nuclear imaging, echocardiography, vascular or general ultrasound tests, imaging systems, radiopharmaceuticals, and licensing services, as well as offers remote cardiac event monitoring services. The Mobile Healthcare segment offers contract diagnostic imaging services, including computerized tomography (CT), magnetic resonance imaging (MRI), positron emission tomography (PET), PET/CT, and nuclear medicine and healthcare services to hospitals, integrated delivery networks, and federal institutions on a long-term contract basis, as well as provisional services to institutions that are in transition. The Diagnostic Imaging segment develops and sells gamma camera imaging systems, such as nuclear cardiac imaging systems and general purpose nuclear imaging systems to physician offices and hospitals; and offers camera maintenance services. Digirad Corporation was founded in 1985 and is headquartered in Suwanee, Georgia.

Precision Optics Company Profile

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. The company 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. It also provides components and assemblies, which are designed for industrial and military use. The company markets its products to original equipment manufacturers through medical device companies. Precision Optics Corporation, Inc. has collaboration with OmniVision Technologies, Inc. to develop optical solutions based on an image sensor integrated with its lenses. The company was founded in 1982 and is based in Gardner, Massachusetts.

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