Comparing Precision Optics (NASDAQ:POCI) & Lucid Diagnostics (NASDAQ:LUCD)

Precision Optics (NASDAQ:POCI) and Lucid Diagnostics (NASDAQ:LUCD) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.

Institutional & Insider Ownership

13.7% of Precision Optics shares are owned by institutional investors. Comparatively, 74.0% of Lucid Diagnostics shares are owned by institutional investors. 14.4% of Precision Optics shares are owned by insiders. Comparatively, 6.8% of Lucid Diagnostics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for Precision Optics and Lucid Diagnostics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Precision Optics	1	0	0	0	1.00
Lucid Diagnostics	1	0	4	0	2.60

Lucid Diagnostics has a consensus target price of $4.19, suggesting a potential upside of 333.94%. Given Lucid Diagnostics’ stronger consensus rating and higher probable upside, analysts clearly believe Lucid Diagnostics is more favorable than Precision Optics.

Earnings and Valuation

This table compares Precision Optics and Lucid Diagnostics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Precision Optics	$28.94 million	2.29	-$5.78 million	($0.63)	-9.60
Lucid Diagnostics	$5.13 million	38.17	-$58.01 million	($0.47)	-2.05

Precision Optics has higher revenue and earnings than Lucid Diagnostics. Precision Optics is trading at a lower price-to-earnings ratio than Lucid Diagnostics, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Precision Optics has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500. Comparatively, Lucid Diagnostics has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Precision Optics	-17.03%	-37.47%	-19.96%
Lucid Diagnostics	-876.72%	N/A	-116.26%

Summary

Lucid Diagnostics beats Precision Optics on 9 of the 14 factors compared between the two stocks.

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.

About Lucid Diagnostics

Lucid Diagnostics Inc. operates as a commercial-stage medical diagnostics technology company in the United States. The company focuses on patients with gastroesophageal reflux disease (GERD) who are at risk of developing esophageal precancer and cancer, primarily highly lethal esophageal adenocarcinoma. Its flagship product, the EsoGuard Esophageal DNA Test performed on samples collected with the EsoCheck Esophageal Cell collection device, a testing tool with the goal of preventing EAC deaths through early detection of esophageal precancer in at-risk GERD patients. The company was incorporated in 2018 and is based in New York, New York. Lucid Diagnostics Inc. is a subsidiary of PAVmed Inc.