Critical Analysis: Vicarious Surgical (NYSE:RBOT) & Precision Optics (NASDAQ:POCI)

Precision Optics (NASDAQ:POCI) and Vicarious Surgical (NYSE:RBOT) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.

Profitability

This table compares Precision Optics and Vicarious Surgical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Precision Optics	-28.33%	-60.56%	-32.67%
Vicarious Surgical	N/A	-184.13%	-112.50%

Risk and Volatility

Precision Optics has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500. Comparatively, Vicarious Surgical has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500.

Insider & Institutional Ownership

13.7% of Precision Optics shares are held by institutional investors. Comparatively, 47.3% of Vicarious Surgical shares are held by institutional investors. 14.4% of Precision Optics shares are held by company insiders. Comparatively, 10.0% of Vicarious Surgical shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Precision Optics and Vicarious Surgical”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Precision Optics	$19.09 million	1.79	-$5.78 million	($0.92)	-4.82
Vicarious Surgical	N/A	N/A	-$63.22 million	($9.05)	-0.25

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Precision Optics and Vicarious Surgical, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Precision Optics	1	0	0	0	1.00
Vicarious Surgical	1	2	0	0	1.67

Vicarious Surgical has a consensus price target of $7.00, indicating a potential upside of 208.23%. Given Vicarious Surgical’s stronger consensus rating and higher probable upside, analysts clearly believe Vicarious Surgical is more favorable than Precision Optics.

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 Vicarious Surgical

Vicarious Surgical Inc. operates as a robotics technology company in the United States. The company focuses on developing and commercializing Vicarious System, a single-incision surgical robot that virtually transports surgeons inside the patient to perform minimally invasive surgery. Vicarious Surgical Inc. was incorporated in 2014 and is headquartered in Waltham, Massachusetts.