Head-To-Head Survey: DexCom (NASDAQ:DXCM) and Precision Optics (NASDAQ:POCI)

DexCom (NASDAQ:DXCM) and Precision Optics (NASDAQ:POCI) are both healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for DexCom and Precision Optics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DexCom	0	2	24	2	3.00
Precision Optics	1	0	0	0	1.00

DexCom currently has a consensus price target of $95.50, indicating a potential upside of 19.49%. Given DexCom’s stronger consensus rating and higher possible upside, analysts plainly believe DexCom is more favorable than Precision Optics.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DexCom	$4.66 billion	6.39	$836.30 million	$2.55	31.34
Precision Optics	$31.53 million	1.77	-$3.63 million	($0.46)	-11.04

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

Insider and Institutional Ownership

97.8% of DexCom shares are held by institutional investors. Comparatively, 13.7% of Precision Optics shares are held by institutional investors. 0.3% of DexCom shares are held by insiders. Comparatively, 12.7% of Precision Optics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DexCom	19.42%	37.77%	15.98%
Precision Optics	-11.51%	-23.92%	-13.05%

Risk and Volatility

DexCom has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500. Comparatively, Precision Optics has a beta of 0.23, meaning that its stock price is 77% less volatile than the S&P 500.

Summary

DexCom beats Precision Optics on 14 of the 15 factors compared between the two stocks.

About DexCom

DexCom, Inc. develops and markets continuous glucose monitoring (CGM) systems for people with diabetes. Its wearable sensors measure glucose levels throughout the day and send readings to compatible receivers or mobile devices, helping users monitor glucose trends and support treatment decisions. The company’s products include its Dexcom G6 and G7 CGM systems, along with software and connected services for users and caregivers. DexCom also offers Stelo, an over-the-counter glucose biosensor designed for adults who do not use insulin.

About Precision Optics

Precision Optics Corporation, Inc. is a medical technology company that develops and manufactures advanced optical systems and components for minimally invasive medical procedures. The company works primarily with medical device manufacturers, providing specialized imaging technologies designed to support visualization during surgery and other clinical applications. Its product portfolio includes rigid and flexible endoscopes, three-dimensional endoscopic systems, disposable and reusable visualization devices, surgical cameras, and custom optical assemblies.