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 $47.7M against $38.1M — 1.3× the size. Precision Optics Corp. has negative trailing earnings, so its P/E is not meaningful; Nephros Inc. trades at 23.4×. Precision Optics Corp. grew revenue faster over the last twelve months: 65.2% against 24.2%. Nephros Inc. has the higher net margin (8.38% vs −11.5%) and the higher return on invested capital (14.1% vs −18.6%). Across the 18 metrics below, Nephros Inc. leads on 13 and Precision Optics Corp. on 5.

Valuation

Metric NEPH POCI Medical Instruments & Supplies median
P/E 23.43 n/m 33.75
P/S 1.91 1.15 2.52
P/B 3.31 1.79 2.48
Price to free cash flow n/m n/m 25.19
EV/EBITDA 19.82 n/m 14.62
EV/Sales 1.69 0.88 2.88
Earnings yield 4.27% (9.92%) (2.67%)
Free cash flow yield (1.98%) (5.45%) 0.09%

Profitability

Metric NEPH POCI Medical Instruments & Supplies median
Gross margin 61.26% 17.22% 54.29%
Operating margin 7.92% (11.13%) 1.07%
Net margin 8.38% (11.51%) (1.61%)
Free cash flow margin (3.19%) (6.28%) 1.08%
Return on equity 16.10% (22.26%) (1.32%)
Return on assets 12.39% (13.93%) 0.00%
Return on invested capital 14.11% (18.59%) 0.00%

Growth

Metric NEPH POCI Medical Instruments & Supplies median
Revenue growth (TTM) 24.20% 65.16% 8.85%
EPS growth (last fiscal year) 1,471.43% 49.94% 8.65%
Revenue growth, 5-year CAGR 17.02% 24.19% 9.17%
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 0.06 0.10
Current ratio 4.07 2.28 2.48
Net debt to EBITDA (4.20) 2.65 0.89

Dividend

Metric NEPH POCI Medical Instruments & Supplies median
Dividend yield — — 1.11%
Payout ratio — — 0.27

Size

Metric NEPH POCI Medical Instruments & Supplies median
Market cap 38.12m 47.73m 619.84m

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