Comparing Lightwave Logic (NASDAQ:LWLG) and A2Z Cust2Mate Solutions (NASDAQ:AZ)

A2Z Cust2Mate Solutions (NASDAQ:AZ) and Lightwave Logic (NASDAQ:LWLG) are both small-cap technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, profitability, earnings, dividends, risk and institutional ownership.

Analyst Ratings

This is a summary of current recommendations and price targets for A2Z Cust2Mate Solutions and Lightwave Logic, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
A2Z Cust2Mate Solutions	1	1	2	0	2.25
Lightwave Logic	1	0	1	0	2.00

A2Z Cust2Mate Solutions presently has a consensus target price of $15.00, suggesting a potential upside of 165.96%. Lightwave Logic has a consensus target price of $10.00, suggesting a potential upside of 83.82%. Given A2Z Cust2Mate Solutions’ stronger consensus rating and higher possible upside, equities research analysts clearly believe A2Z Cust2Mate Solutions is more favorable than Lightwave Logic.

Insider and Institutional Ownership

12.6% of A2Z Cust2Mate Solutions shares are owned by institutional investors. Comparatively, 27.0% of Lightwave Logic shares are owned by institutional investors. 27.9% of A2Z Cust2Mate Solutions shares are owned by insiders. Comparatively, 2.2% of Lightwave Logic shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares A2Z Cust2Mate Solutions and Lightwave Logic”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
A2Z Cust2Mate Solutions	$7.90 million	31.80	-$37.74 million	($0.83)	-6.80
Lightwave Logic	$240,000.00	3,494.52	-$20.31 million	($0.16)	-34.00

Lightwave Logic has lower revenue, but higher earnings than A2Z Cust2Mate Solutions. Lightwave Logic is trading at a lower price-to-earnings ratio than A2Z Cust2Mate Solutions, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares A2Z Cust2Mate Solutions and Lightwave Logic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
A2Z Cust2Mate Solutions	-241.67%	-49.91%	-43.81%
Lightwave Logic	-9,143.60%	-30.34%	-28.76%

Risk & Volatility

A2Z Cust2Mate Solutions has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Lightwave Logic has a beta of 2.4, indicating that its share price is 140% more volatile than the S&P 500.

About A2Z Cust2Mate Solutions

A2Z Smart Technologies Corp., a technology company, focuses on the development and commercialization of retail smart cart solutions for grocery stores and supermarkets in Israel and internationally. The company operates through three segments: Precision Metal Parts, Advanced Engineering, and Smart Carts. It offers Cust2Mate system, which incorporates a smart cart that automatically calculates the value of the customers purchases in their smart cart without having to unload and reload their purchases at a customer checkout point. The company also manufactures and sells precision metal parts; provides retail automation solutions; and develops Fuel Tank Inertia Capsule System technology (FTICS), a vehicle device cover for the military and civilian automotive industry. In addition, it provides maintenance services utilizing the application of advanced engineering capabilities to the military and security markets, as well as develops related products for the civilian and retail markets; container leasing services; and maintenance services for complex electronic systems and products. It serves its products to grocery stores, hardware stores, household essentials, do it yourself (DIY) retailers, discount stores, warehouse stores, convenience stores, drug stores, duty free shops, and similar outlets. The company is headquartered in Vancouver, Canada.

About Lightwave Logic

Lightwave Logic, Inc. focuses on the development of photonic devices and electro-optical polymer materials systems for fiber-optic data communications, telecommunications, and optical computing markets in the United States. The company is involved in the designing and synthesizing of organic chromophores for use in its electro-optic polymer systems and photonic device designs. It also offers electro-optic modulators, which converts data from electric signals to optical signals for transmission over fiber-optic cables; and polymer photonic integrated circuits, a photonic device, which integrates various photonic functions on a single chip. In addition, the company provides the ridge waveguide modulator, a modulator that fabricates the waveguide within a layer of its electro-optic polymer system. It focuses on selling its products to electro-optic device manufacturers, contract manufacturers, original equipment manufacturers, foundries, packaging and assembly manufacturers, etc.; and semiconductor companies, optical network companies, Web 2.0/3.0 media companies, computing companies, telecommunications companies, aerospace companies, automotive companies, and government agencies and defense entities. The company was formerly known as Third-order Nanotechnologies, Inc. and changed its name to Lightwave Logic, Inc. in March 2008. Lightwave Logic, Inc. was founded in 1991 and is headquartered in Englewood, Colorado.