Head-To-Head Contrast: PROCEPT BioRobotics (NASDAQ:PRCT) and IRIDEX (NASDAQ:IRIX)

PROCEPT BioRobotics (NASDAQ:PRCT) and IRIDEX (NASDAQ:IRIX) are both small-cap healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Risk & Volatility

PROCEPT BioRobotics has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, IRIDEX has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for PROCEPT BioRobotics and IRIDEX, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PROCEPT BioRobotics	2	9	3	1	2.20
IRIDEX	1	0	1	0	2.00

PROCEPT BioRobotics presently has a consensus price target of $25.09, suggesting a potential upside of 45.88%. IRIDEX has a consensus price target of $3.00, suggesting a potential upside of 380.00%. Given IRIDEX’s higher probable upside, analysts plainly believe IRIDEX is more favorable than PROCEPT BioRobotics.

Insider & Institutional Ownership

89.5% of PROCEPT BioRobotics shares are held by institutional investors. Comparatively, 20.1% of IRIDEX shares are held by institutional investors. 4.0% of PROCEPT BioRobotics shares are held by company insiders. Comparatively, 8.6% of IRIDEX shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares PROCEPT BioRobotics and IRIDEX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PROCEPT BioRobotics	-32.53%	-30.62%	-22.10%
IRIDEX	-6.88%	N/A	-12.55%

Valuation and Earnings

This table compares PROCEPT BioRobotics and IRIDEX”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PROCEPT BioRobotics	$337.34 million	2.92	-$95.57 million	($1.94)	-8.87
IRIDEX	$52.67 million	0.21	-$4.44 million	($0.20)	-3.12

IRIDEX has lower revenue, but higher earnings than PROCEPT BioRobotics. PROCEPT BioRobotics is trading at a lower price-to-earnings ratio than IRIDEX, indicating that it is currently the more affordable of the two stocks.

Summary

IRIDEX beats PROCEPT BioRobotics on 8 of the 15 factors compared between the two stocks.

About PROCEPT BioRobotics

PROCEPT BioRobotics Corporation, a surgical robotics company, focuses on developing transformative solutions in urology in the United States and internationally. The company develops, manufactures, and sells AquaBeam Robotic System, an image-guided, surgical robotic system for use in minimally invasive urologic surgery with a focus on treating benign prostatic hyperplasia (BPH). It also designs Aquablation therapy for males suffering from lower urinary tract symptoms due to BPH. PROCEPT BioRobotics Corporation was incorporated in 2007 and is headquartered in San Jose, California.

About IRIDEX

IRIDEX Corporation, an ophthalmic medical technology company, provides therapeutic based laser systems, delivery devices, and consumable instrumentation to treat sight-threatening eye diseases in ophthalmology. It offers laser consoles, such as Cyclo G6 laser system for use in the treatment of glaucoma; IQ 532 and IQ 577 laser systems, which are used for the treatment of retinal disorders; and OcuLight TX, OcuLight SL, OcuLight SLx, OcuLight GL, and OcuLight GLx laser photocoagulation systems that are used to treat proliferative diabetic retinopathy, macular holes, retinal tears, and detachments. The company also provides delivery devices, including TxCell scanning laser delivery system that allows the physician to perform multi-spot pattern scanning; slit lamp adapter, which allows the physician to utilize a standard slit lamp in diagnosis and treatment procedures; and laser indirect ophthalmoscope for use in procedures to treat peripheral retinal disorders. It offers MicroPulse P3 Probe, which is used with its Cylco G6 laser system to perform MicroPulse transscleral laser therapy; G-Probe, which is used in procedures to treat uncontrolled glaucoma; G-Probe and G-Probe Illuminate, which are used in procedures to treat refractory glaucoma; and EndoProbe family of products for use in vitrectomy procedures. The company serves ophthalmologists, research and teaching hospitals, government installations, surgical centers, hospitals, veterinary practices, and office clinics. It markets its products through direct and independent sales force in the United States, as well as through independent distributors internationally. The company was formerly known as IRIS Medical Instruments, Inc. and changed its name to IRIDEX Corporation in November 1995. IRIDEX Corporation was incorporated in 1989 and is headquartered in Mountain View, California.