Head to Head Analysis: Pixie Dust Technologies (NASDAQ:PXDT) & Precision Optics (NASDAQ:POCI)

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

Profitability

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

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

Valuation and Earnings

This table compares Pixie Dust Technologies and Precision Optics’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pixie Dust Technologies	$5.18 million	7.08	-$14.45 million	N/A	N/A
Precision Optics	$21.05 million	1.60	-$140,000.00	($0.30)	-18.50

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

Analyst Recommendations

This is a summary of current ratings and price targets for Pixie Dust Technologies and Precision Optics, as reported by MarketBeat.

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

Pixie Dust Technologies presently has a consensus price target of $5.21, indicating a potential upside of 108.68%. Given Pixie Dust Technologies’ higher probable upside, research analysts clearly believe Pixie Dust Technologies is more favorable than Precision Optics.

Insider and Institutional Ownership

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

Summary

Pixie Dust Technologies beats Precision Optics on 6 of the 10 factors compared between the two stocks.

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.

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.