LightPath Technologies (NASDAQ:LPTH – Get Free Report) and Deswell Industries (NASDAQ:DSWL – Get Free Report) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.
Insider and Institutional Ownership
56.3% of LightPath Technologies shares are held by institutional investors. 24.8% of LightPath Technologies shares are held by insiders. Comparatively, 39.0% of Deswell Industries shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares LightPath Technologies and Deswell Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LightPath Technologies | -43.41% | -32.64% | -10.70% |
| Deswell Industries | N/A | N/A | N/A |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LightPath Technologies | 1 | 1 | 4 | 1 | 2.71 |
| Deswell Industries | 0 | 0 | 1 | 0 | 3.00 |
LightPath Technologies presently has a consensus price target of $12.10, indicating a potential upside of 2.80%. Given LightPath Technologies’ higher possible upside, analysts plainly believe LightPath Technologies is more favorable than Deswell Industries.
Risk & Volatility
LightPath Technologies has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, Deswell Industries has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500.
Earnings & Valuation
This table compares LightPath Technologies and Deswell Industries”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LightPath Technologies | $37.20 million | 18.26 | -$14.87 million | ($0.52) | -22.63 |
| Deswell Industries | $67.61 million | 0.88 | $11.14 million | $0.48 | 7.75 |
Deswell Industries has higher revenue and earnings than LightPath Technologies. LightPath Technologies is trading at a lower price-to-earnings ratio than Deswell Industries, indicating that it is currently the more affordable of the two stocks.
Summary
Deswell Industries beats LightPath Technologies on 9 of the 15 factors compared between the two stocks.
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.
About Deswell Industries
Deswell Industries, Inc. manufactures and sells injection-molded plastic parts and components, electronic products and subassemblies, and metallic molds and accessory parts for original equipment manufacturers and contract manufacturers in China, the United States, Europe, Hong Kong, the United Kingdom, Canada, and internationally. It operates through two segments, Plastic Injection Molding and Electronic Products Assembling. The company produces a range of plastic parts and components that are used in the manufacture of consumer and industrial products, which include plastic components for electronic entertainment products, power tools, accessories, and outdoor equipment; cases for flashlights, telephones, printers, scanners; parts for industrial components, and indoor control switches, as well as parts for audio equipment, and cases and key tops for personal organizers and remote controls; double injection caps; parts for medical products comprising apparatus for blood tests; laser key caps; automobile components; and plastic components of automatic robot. It also provides electronic products that consist of audio equipment, including digital and analogue audio mixers, amplifiers, signal processors, audio interfaces, network audio equipment, and speaker enclosures; consumer audio products, such as multi-channel receivers-amplifiers, wired and wireless audio streaming products, and headphones; printed circuit board assemblies; and medical products. The company was founded in 1987 and is based in Macau.
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