Contrasting Pixie Dust Technologies (NASDAQ:PXDT) & Precision Optics (NASDAQ:POCI)

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

Insider and Institutional Ownership

13.7% of Precision Optics shares are held by institutional investors. Comparatively, 0.4% of Pixie Dust Technologies shares are held by institutional investors. 16.3% of Precision Optics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Precision Optics and Pixie Dust Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Precision Optics	-8.93%	-21.74%	-13.02%
Pixie Dust Technologies	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent recommendations for Precision Optics and Pixie Dust Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Precision Optics	0	0	0	0	N/A
Pixie Dust Technologies	0	0	1	0	3.00

Pixie Dust Technologies has a consensus target price of $5.21, suggesting a potential upside of 106.75%. Given Pixie Dust Technologies’ higher possible upside, analysts clearly believe Pixie Dust Technologies is more favorable than Precision Optics.

Earnings & Valuation

This table compares Precision Optics and Pixie Dust Technologies’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Precision Optics	$21.05 million	1.56	-$140,000.00	($0.30)	-18.03
Pixie Dust Technologies	$5.18 million	7.15	-$14.45 million	N/A	N/A

Precision Optics has higher revenue and earnings than Pixie Dust Technologies.

Summary

Pixie Dust Technologies beats Precision Optics on 6 of the 10 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 Pixie Dust Technologies

Pixie Dust Technologies, Inc., a technology company, focuses on personal care and diversity, and workspace and digital transformation businesses primarily in Japan. It offers SonoRepro, an ultrasonic non-contact vibrotactile stimulation scalp care device; VUEVO, a series of directional voice arrival detection devices for individuals with deaf and hard-of-hearing; and kikippa, an acoustic stimulation device functioning as a desk-top speaker. The company also provides iwasemi, a sound-absorbing or sound-proofing material for architectural and interior design firms; hackke, a location positioning technology; KOTOWARI, a technology offering spatial analysis data; and magickiri, a planning services and monitoring service, which monitors human behavior and analyzes the customer's environment on the customer's behalf. In addition, it operates Pixie Nest, a membership forum, which hosts meetings and distributes information to facilitate solving social issues. The company was incorporated in 2017 and is headquartered in Tokyo, Japan.