Cylinder Head Rebuild or Replace

I have a 2001 380 DA with twin mercruiser 7.4 Gen VI engines with 550 hours. Last summer port engine was not running correctly. Reputable marine shop ran short test on engine found cylinder 2 and 5 were not firing, traced problem to a bad pick up coil in the distributor. In diagnosing the problem, they also did a compression test and results were per cylinder below;

1.120 2.120

3.110 4.100

5.100 6.120

7.120 8.110

I was also told Port engine is lacking 300 RPM,s to starboard which is due to the lower compression in the port engine. Advise having the cylinder heads rebuilt over winter storage.
So basically I was told to run it through the balance of the season. The engine seems to run smooth without any excess oil consumption.
A couple of questions here. Rebuild the cylinder heads or replace? What are the cons to doing nothing and running her as is?
Thanks for your feedback!
Tim

Before going any further, I'd insist on a proper leakdown test. A "normal" compression test can't differentiate between valves and rings, so arbitrarily pulling the heads may not cure the low numbers seen. As for rebuild/replace; meh... Assuming your mechanic does a good job, there's nothing wrong with rebuilding the heads.

Those numbers are terrible. The fact that it's not using oil would mean your cylinders are in good shape. Yes rebuild your heads, every thing including guides and seats.

Was the compression test done cold or hot? Was the throttle advance to full open during the test? Was the battery FULLY charged before starting the test? Were the numbers verified using a second gauge? I would to be sure all these were done on a hot engine after taking the boat for a good 45-60 run to endure accurate results.

Rebuild by a reputable machine shop should be fine. Like others have said confirm that's the source first via leak down and validate the compression test was done correctly.

Rebuild. I stole my boat (on price) because the PO had the heads off at sale time, bad idea on his part, scared buyers away, told me heads out getting new valve work. Hours about same as yours, 7.4. Survey said really strong engine after assembly and sea trial. Absolutely rebuild.

Thanks everyone for the positive feedback. I will make sure all the boxes are checked off before proceeding. If it ends up being a rebuild of the heads, does anyone have a ballpark number for labor to remove, rebuild and install? How many hours do you think is reasonable?

I was quoted $2,800 for an 8.1