IDEXX Laboratories (NASDAQ:IDXX – Get Free Report) and Precision Optics (NASDAQ:POCI – Get Free Report) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.
Profitability
This table compares IDEXX Laboratories and Precision Optics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| IDEXX Laboratories | 24.63% | 70.87% | 32.56% |
| Precision Optics | -17.03% | -37.47% | -19.96% |
Risk and Volatility
IDEXX Laboratories has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500. Comparatively, Precision Optics has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| IDEXX Laboratories | 0 | 4 | 7 | 0 | 2.64 |
| Precision Optics | 1 | 0 | 0 | 0 | 1.00 |
IDEXX Laboratories currently has a consensus price target of $751.00, suggesting a potential upside of 34.26%. Given IDEXX Laboratories’ stronger consensus rating and higher possible upside, equities research analysts clearly believe IDEXX Laboratories is more favorable than Precision Optics.
Institutional and Insider Ownership
87.8% of IDEXX Laboratories shares are held by institutional investors. Comparatively, 13.7% of Precision Optics shares are held by institutional investors. 0.8% of IDEXX Laboratories shares are held by company insiders. Comparatively, 14.4% of Precision Optics shares are held by company 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.
Earnings & Valuation
This table compares IDEXX Laboratories and Precision Optics”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| IDEXX Laboratories | $4.30 billion | 10.25 | $1.06 billion | $13.58 | 41.19 |
| Precision Optics | $19.09 million | 2.83 | -$5.78 million | ($0.63) | -7.83 |
IDEXX Laboratories has higher revenue and earnings than Precision Optics. Precision Optics is trading at a lower price-to-earnings ratio than IDEXX Laboratories, indicating that it is currently the more affordable of the two stocks.
Summary
IDEXX Laboratories beats Precision Optics on 13 of the 14 factors compared between the two stocks.
About IDEXX Laboratories
IDEXX Laboratories, Inc. develops, manufactures, and distributes products primarily for the companion animal veterinary, livestock and poultry, dairy, and water testing markets in Africa, the Asia Pacific, Canada, Europe, Latin America, and internationally. The company operates through three segments: Companion Animal Group; Water Quality Products; and Livestock, Poultry and Dairy. It also provides point-of-care veterinary diagnostic products, including instruments, consumables, and rapid assay test kits; veterinary reference laboratory diagnostic and consulting services; practice management and diagnostic imaging systems and services for veterinarians; and health monitoring, biological materials testing, and laboratory diagnostic instruments, and services for biomedical research community. In addition, the company offers diagnostic and health-monitoring products for livestock, poultry, and dairy; products that test water for various microbiological contaminants; point-of-care electrolytes and blood gas analyzers; in-clinic chemistry, blood and urine chemistry, hematology, immunoassay, urinalysis, and coagulation analyzers; and SNAP rapid assays test kits. Further, it provides Colilert, Colilert-18, and Colisure tests, which detect the presence of total coliforms and E. coli in water; Enterolert, Pseudalert, Filta-Max and Filta-Max xpress, Legiolert, and Quanti-Tray products; and veterinary software and services for independent veterinary clinics and corporate groups. Additionally, the company offers human medical point-of-care products and laboratory diagnostics services. The company markets its products through marketing, customer service, sales, and technical service groups, as well as through independent distributors and other resellers. IDEXX Laboratories, Inc. was incorporated in 1983 and is headquartered in Westbrook, Maine.
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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