LightPath Technologies (NASDAQ:LPTH) versus TDK (OTCMKTS:TTDKY) Critical Review

LightPath Technologies (NASDAQ:LPTHGet Free Report) and TDK (OTCMKTS:TTDKYGet Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.

Risk and Volatility

LightPath Technologies has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, TDK has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.

Profitability

This table compares LightPath Technologies and TDK’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LightPath Technologies -37.38% -15.55% -6.87%
TDK 7.87% 10.01% 4.90%

Valuation and Earnings

This table compares LightPath Technologies and TDK”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LightPath Technologies $37.20 million 20.51 -$14.87 million ($0.50) -24.30
TDK $16.64 billion 2.29 $1.30 billion $0.69 28.41

TDK has higher revenue and earnings than LightPath Technologies. LightPath Technologies is trading at a lower price-to-earnings ratio than TDK, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for LightPath Technologies and TDK, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LightPath Technologies 1 1 3 1 2.67
TDK 0 0 0 1 4.00

LightPath Technologies presently has a consensus price target of $14.13, suggesting a potential upside of 16.26%. Given LightPath Technologies’ higher probable upside, equities analysts clearly believe LightPath Technologies is more favorable than TDK.

Institutional & Insider Ownership

56.3% of LightPath Technologies shares are held by institutional investors. 24.8% of LightPath Technologies shares are held by insiders. Comparatively, 0.0% of TDK shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

TDK beats LightPath Technologies on 8 of the 14 factors compared between the two stocks.

About LightPath Technologies

(Get Free Report)

LightPath Technologies, Inc. designs, develops, manufactures, and distributes optical components and assemblies. The company offers precision molded glass aspheric optics, molded and diamond-turned infrared aspheric lenses, and other optical components used to produce products that manipulate light; and infrared products, including catalog and custom infrared optics. Its products are used in defense products, medical devices, laser aided industrial tools, automotive safety applications, barcode scanners, optical data storage, hybrid fiber coax datacom, telecommunications, machine vision and sensors, and other sectors. The company sells its products directly to customers in Europe and Asia. LightPath Technologies, Inc. was founded in 1985 and is headquartered in Orlando, Florida.

About TDK

(Get Free Report)

TDK Corporation, together with its subsidiaries, engages in manufacture and sale of electronic components in Japan, Europe, China, Asia, the Americas, and internationally. The company operates through Passive Components, Sensor Application Products, Magnetic Application Products, Energy Application Products, and Other segments. The Passive Components segment offers ceramic capacitors, aluminum electrolytic capacitors, film capacitors, high-frequency components, piezoelectric materials, and circuit protection components, as well as inductive devices, including ferrite cores, coils, and transformers. The Sensor Application Products segment provides temperature and pressure, magnetic, and MEMS sensors. The Magnetic Application Products segment offers hard disk drives (HDD) heads, HDD suspension assemblies, and magnets. The Energy Application Products segment provides energy devices comprising rechargeable batteries, and power supplies. The Other segment provides mechatronics production equipment and camera module micro actuators for smartphones and other products. The company also engages in engages in insurance and real estate agency businesses. The company was formerly known as Tokyo Denki Kagaku Kogyo K.K. and changed its name to TDK Corporation in 1983. TDK Corporation was founded in 1935 and is headquartered in Tokyo, Japan.

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