Contrasting InMode (NASDAQ:INMD) & Precision Optics (NASDAQ:PEYE)

InMode (NASDAQ:INMD) and Precision Optics (OTCMKTS:PEYE) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, risk, profitability, analyst recommendations and earnings.

Analyst Ratings

This is a summary of recent ratings and target prices for InMode and Precision Optics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
InMode 0 0 4 0 3.00
Precision Optics 0 0 0 0 N/A

InMode presently has a consensus price target of $37.00, suggesting a potential downside of 12.20%. Given InMode’s higher possible upside, research analysts plainly believe InMode is more favorable than Precision Optics.

Valuation and Earnings

This table compares InMode and Precision Optics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
InMode $100.16 million 13.45 $22.37 million N/A N/A
Precision Optics $6.80 million 3.69 -$620,000.00 N/A N/A

InMode has higher revenue and earnings than Precision Optics.

Insider and Institutional Ownership

11.7% of InMode shares are held by institutional investors. 24.7% of Precision Optics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
InMode 30.33% 50.50% 36.58%
Precision Optics -5.18% -9.32% -5.19%

Summary

InMode beats Precision Optics on 9 of the 10 factors compared between the two stocks.

InMode Company Profile

InMode Ltd. designs, develops, manufactures, and markets minimally-invasive aesthetic medical products based on its proprietary radio frequency assisted lipolysis and deep subdermal fractional radio frequency technologies. The company offers minimally-invasive aesthetic medical products for procedures, such as liposuction with simultaneous skin tightening, body and face contouring, and ablative skin rejuvenation treatments. It also designs, develops, manufactures, and markets non-invasive medical aesthetic products that target an array of procedures, including permanent hair reduction, facial skin rejuvenation, wrinkle reduction, cellulite treatment, skin appearance and texture, and superficial benign vascular and pigmented lesions. InMode Ltd. offers its products directly in the United States, Canada, the United Kingdom, Spain, and India, as well as indirectly through third-party distributors internationally. The company was formerly known as Invasix Ltd. and changed its name to InMode Ltd. in November 2017. InMode Ltd. was founded in 2008 and is headquartered in Yokneam, Israel.

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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