Precision Optics (OTCMKTS:PEYE – Get Free Report) and Semler Scientific (NASDAQ:SMLR – Get Free Report) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.
Institutional and Insider Ownership
49.4% of Semler Scientific shares are held by institutional investors. 22.7% of Precision Optics shares are held by company insiders. Comparatively, 30.2% of Semler Scientific shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current recommendations for Precision Optics and Semler Scientific, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Precision Optics | 0 | 0 | 0 | 0 | 0.00 |
| Semler Scientific | 0 | 0 | 1 | 0 | 3.00 |
Volatility and Risk
Precision Optics has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500. Comparatively, Semler Scientific has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.
Earnings & Valuation
This table compares Precision Optics and Semler Scientific”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Precision Optics | $15.68 million | 0.00 | -$930,000.00 | ($0.06) | N/A |
| Semler Scientific | $68.18 million | 6.69 | $20.58 million | $2.05 | 24.00 |
Semler Scientific has higher revenue and earnings than Precision Optics. Precision Optics is trading at a lower price-to-earnings ratio than Semler Scientific, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Precision Optics and Semler Scientific’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Precision Optics | -5.93% | -12.10% | -6.41% |
| Semler Scientific | 27.00% | 20.31% | 18.78% |
Summary
Semler Scientific beats Precision Optics on 13 of the 13 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 Semler Scientific
Semler Scientific, Inc. provides technology solutions to enhance the clinical effectiveness and efficiency of healthcare providers in the United States. The company’s products include QuantaFlo, a four-minute in-office blood flow test that enables healthcare providers to use blood flow measurements as part of their examinations of a patient’s vascular condition. It also offers Insulin Insights, a software program that is used by a healthcare provider to optimize outpatient insulin dosing. The company’s products serve cardiologists, internists, nephrologists, endocrinologists, podiatrists, family practitioners, healthcare insurance plans, integrated delivery networks, independent physician groups, and companies contracting with the healthcare industry, such as risk assessment groups and retailers. It offers its products through sales representatives and distributors. The company was incorporated in 2007 and is headquartered in Santa Clara, California.
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