Nephros Inc. (NEPH) vs Precision Optics Corp. (POCI)

Nephros Inc. and Precision Optics Corp. are both Medical Instruments & Supplies companies. Precision Optics Corp. is the larger, with a market value of $52.3M against $45.0M — 1.2× the size. Precision Optics Corp. has negative trailing earnings, so its P/E is not meaningful; Nephros Inc. trades at 27.2×. Precision Optics Corp. grew revenue faster over the last twelve months: 64.2% against 24.2%. Nephros Inc. has the higher net margin (8.38% vs −17.0%) and the higher return on invested capital (14.1% vs −27.4%). Across the 18 metrics below, Nephros Inc. leads on 14 and Precision Optics Corp. on 4.

Valuation

Metric NEPH POCI Medical Instruments & Supplies median
P/E 27.15 n/m 34.17
P/S 2.22 1.25 2.83
P/B 3.84 1.79 2.82
Price to free cash flow n/m n/m 25.69
EV/EBITDA 23.83 n/m 16.08
EV/Sales 2.03 0.93 3.06
Earnings yield 3.68% (13.69%) (1.84%)
Free cash flow yield (1.71%) (5.27%) 0.17%

Profitability

Metric NEPH POCI Medical Instruments & Supplies median
Gross margin 61.26% 13.85% 54.62%
Operating margin 7.92% (16.44%) 1.64%
Net margin 8.38% (17.03%) 0.00%
Free cash flow margin (3.19%) (6.57%) 1.61%
Return on equity 16.10% (29.62%) 0.00%
Return on assets 12.39% (18.49%) 0.00%
Return on invested capital 14.11% (27.38%) 0.00%

Growth

Metric NEPH POCI Medical Instruments & Supplies median
Revenue growth (TTM) 24.20% 64.18% 9.20%
EPS growth (last fiscal year) 1,471.43% (73.47%) —
Revenue growth, 5-year CAGR 17.02% 13.98% 9.48%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric NEPH POCI Medical Instruments & Supplies median
Debt to equity 0.00 0.07 0.08
Current ratio 4.07 2.10 2.49
Net debt to EBITDA (4.20) (0.02) 0.83

Dividend

Metric NEPH POCI Medical Instruments & Supplies median
Dividend yield — — 0.99%
Payout ratio 0.00 — 0.00

Size

Metric NEPH POCI Medical Instruments & Supplies median
Market cap 44.96m 52.26m 938.39m

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