Reviewing Predictive Oncology (NASDAQ:POAI) and Precipio (NASDAQ:PRPO)

Precipio (NASDAQ:PRPO) and Predictive Oncology (NASDAQ:POAI) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Risk & Volatility

Precipio has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Predictive Oncology has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Precipio and Predictive Oncology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Precipio	1	0	0	0	1.00
Predictive Oncology	1	0	0	0	1.00

Institutional & Insider Ownership

10.5% of Precipio shares are held by institutional investors. Comparatively, 9.0% of Predictive Oncology shares are held by institutional investors. 16.9% of Precipio shares are held by company insiders. Comparatively, 1.2% of Predictive Oncology shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Precipio and Predictive Oncology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Precipio	-5.50%	-10.07%	-6.71%
Predictive Oncology	-5,065.23%	-732.73%	-235.55%

Valuation and Earnings

This table compares Precipio and Predictive Oncology”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Precipio	$18.53 million	2.32	-$4.29 million	($0.82)	-29.94
Predictive Oncology	$1.66 million	11.24	-$12.66 million	($13.50)	-0.41

Precipio has higher revenue and earnings than Predictive Oncology. Precipio is trading at a lower price-to-earnings ratio than Predictive Oncology, indicating that it is currently the more affordable of the two stocks.

Summary

Precipio beats Predictive Oncology on 8 of the 11 factors compared between the two stocks.

About Precipio

Precipio, Inc., a healthcare solutions company, provides diagnostic products, reagents, and services in the United States. It provides diagnostic blood cancer testing services. The company offers IV-Cell, a proprietary cell culture media that enables simultaneous culturing of four hematopoietic cell lineages; and HemeScreen, a suite of robust genetic diagnostic panels. It offers biomarker testing and clinical project services to bio-pharma customers. The company is based in New Haven, Connecticut.

About Predictive Oncology

Predictive Oncology Inc. operates as a science-driven company on the oncology drug discovery. It provides various solutions for the oncology drug development. The company, through the integration of scientific rigor and machine learning, has developed the ability to advance molecules into medicine by introducing human diversity earlier into the discovery process with the pairing of artificial intelligence and the biobank of approximately 150K tumor samples. It operates through four segments: Helomics, zPREDICTA, Soluble, and Skyline. The Helomics segment provides services that include the application of AI, collaboration projects, and clinical testing. The zPREDICTA segment develops organ-specific disease models that provide 3D reconstruction of human tissues representing each disease state and mimicking drug response for testing of anticancer agents. The Soluble segment provides services using a self-contained automated system that conducts self-interaction chromatography screens using additives and excipients included in protein formulations resulting in soluble and physically stable formulations for biologics. This segment also offers protein stability analysis services; protein solubility kits that allow rapid identification of soluble formulations; and proprietary technologies for bacterial endotoxin detection and removal. The Skyline segment provides STREAMWAY System, a wall-mounted fully automated system, which virtually eliminates exposure to blood, irrigation fluid, and other infectious fluids found in the healthcare environment. The company was formerly known as Precision Therapeutics Inc. and changed its name to Predictive Oncology Inc. in June 2019. Predictive Oncology Inc. was incorporated in 2002 and is headquartered in Eagan, Minnesota.