Stoneridge (NYSE:SRI – Get Free Report) and LightPath Technologies (NASDAQ:LPTH – Get Free Report) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.
Volatility and Risk
Stoneridge has a beta of 1.57, indicating that its stock price is 57% more volatile than the S&P 500. Comparatively, LightPath Technologies has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.
Institutional and Insider Ownership
98.1% of Stoneridge shares are owned by institutional investors. Comparatively, 56.3% of LightPath Technologies shares are owned by institutional investors. 2.9% of Stoneridge shares are owned by company insiders. Comparatively, 24.8% of LightPath Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stoneridge | 1 | 0 | 1 | 0 | 2.00 |
| LightPath Technologies | 1 | 1 | 4 | 0 | 2.50 |
Stoneridge presently has a consensus price target of $16.00, suggesting a potential upside of 188.55%. LightPath Technologies has a consensus price target of $9.13, suggesting a potential upside of 46.94%. Given Stoneridge’s higher possible upside, analysts clearly believe Stoneridge is more favorable than LightPath Technologies.
Earnings and Valuation
This table compares Stoneridge and LightPath Technologies”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stoneridge | $874.36 million | 0.18 | -$16.52 million | ($1.16) | -4.78 |
| LightPath Technologies | $43.86 million | 6.43 | -$14.87 million | ($0.39) | -15.92 |
LightPath Technologies has lower revenue, but higher earnings than Stoneridge. LightPath Technologies is trading at a lower price-to-earnings ratio than Stoneridge, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Stoneridge and LightPath Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Stoneridge | -3.39% | -9.24% | -3.69% |
| LightPath Technologies | -39.92% | -53.40% | -18.17% |
Summary
Stoneridge beats LightPath Technologies on 8 of the 14 factors compared between the two stocks.
About Stoneridge
Stoneridge, Inc., together with its subsidiaries, designs and manufactures engineered electrical and electronic systems, components, and modules for the automotive, commercial, off-highway, motorcycle, and agricultural vehicle markets in North America, South America, Europe, and internationally. The company operates through three segments: Control Devices, Electronics, and Stoneridge Brazil. The Control Devices segment offers actuators, sensors, switches, actuators, and connectors that monitor, measure, or activate specific functions within a vehicle. The Electronics segment designs and manufactures driver information systems, vision and safety systems, connectivity and compliance products, and electronic control units. Its products collect, store, and display vehicle information, such as speed, pressure, maintenance data, trip information, operator performance, temperature, distance traveled, and driver messages related to vehicle performance. This segment also offers electronic control units that regulate, coordinate, monitor, and direct the operation of the electrical system within a vehicle. The Stoneridge Brazil segment designs, manufactures, and sells vehicle tracking devices and monitoring services; vehicle security alarms and convenience accessories, including parking sensors and rearview cameras; in-vehicle audio and infotainment devices; and driver information systems and telematics solutions. The company provides its products and systems to various original equipment manufacturers and tier 1 customers, as well as aftermarket distributors. Stoneridge, Inc. was founded in 1965 and is headquartered in Novi, Michigan.
About LightPath Technologies
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.
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