Second Sight Medical Products (NASDAQ:EYES) and IRIDEX (NASDAQ:IRIX) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, earnings, profitability, valuation and institutional ownership.
Profitability
This table compares Second Sight Medical Products and IRIDEX's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Second Sight Medical Products | N/A | -977.63% | -291.02% |
| IRIDEX | -21.54% | -38.60% | -24.99% |
Volatility and Risk
Second Sight Medical Products has a beta of 2.49, suggesting that its stock price is 149% more volatile than the S&P 500. Comparatively, IRIDEX has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.
Valuation and Earnings
This table compares Second Sight Medical Products and IRIDEX's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Second Sight Medical Products | $3.38 million | 50.63 | $-33,590,000.00 | ($1.91) | -3.85 |
| IRIDEX | $43.45 million | 2.75 | $-8,810,000.00 | ($0.64) | -12.05 |
IRIDEX has higher revenue and earnings than Second Sight Medical Products. IRIDEX is trading at a lower price-to-earnings ratio than Second Sight Medical Products, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
4.1% of Second Sight Medical Products shares are held by institutional investors. Comparatively, 32.6% of IRIDEX shares are held by institutional investors. 67.5% of Second Sight Medical Products shares are held by company insiders. Comparatively, 2.0% of IRIDEX 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.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Second Sight Medical Products and IRIDEX, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Second Sight Medical Products | 0 | 0 | 0 | 0 | N/A |
| IRIDEX | 0 | 0 | 2 | 0 | 3.00 |
IRIDEX has a consensus price target of $6.50, suggesting a potential downside of 15.69%. Given IRIDEX's higher possible upside, analysts clearly believe IRIDEX is more favorable than Second Sight Medical Products.
Summary
IRIDEX beats Second Sight Medical Products on 8 of the 13 factors compared between the two stocks.
