LightPath Technologies (NASDAQ:LPTH – Get Free Report) and TE Connectivity (NYSE:TEL – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.
Insider and Institutional Ownership
56.3% of LightPath Technologies shares are held by institutional investors. Comparatively, 91.4% of TE Connectivity shares are held by institutional investors. 14.7% of LightPath Technologies shares are held by company insiders. Comparatively, 0.9% of TE Connectivity shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and price targets for LightPath Technologies and TE Connectivity, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LightPath Technologies | 1 | 1 | 4 | 0 | 2.50 |
| TE Connectivity | 0 | 5 | 9 | 2 | 2.81 |
Valuation and Earnings
This table compares LightPath Technologies and TE Connectivity”s top-line 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 | 9.19 | -$14.87 million | ($0.36) | -20.92 |
| TE Connectivity | $17.26 billion | 4.17 | $3.19 billion | $6.15 | 39.58 |
TE Connectivity has higher revenue and earnings than LightPath Technologies. LightPath Technologies is trading at a lower price-to-earnings ratio than TE Connectivity, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
LightPath Technologies has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, TE Connectivity has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.
Profitability
This table compares LightPath Technologies and TE Connectivity’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LightPath Technologies | -39.92% | -53.40% | -18.17% |
| TE Connectivity | 10.67% | 21.18% | 10.91% |
Summary
TE Connectivity beats LightPath Technologies on 13 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 TE Connectivity
TE Connectivity Ltd., together with its subsidiaries, manufactures and sells connectivity and sensor solutions in Europe, the Middle East, Africa, the AsiaPacific, and the Americas. The company operates through three segments: Transportation Solutions, Industrial Solutions, and Communications Solutions. The Transportation Solutions segment provides terminals and connector systems and components, sensors, relays, antennas, and application tooling products for use in the automotive, commercial transportation, and sensor markets. The Industrial Solutions segment offers terminals and connector systems and components; and interventional medical components, relays, heat shrink tubing, and wires and cables for industrial equipment, aerospace, defense, marine, medical, and energy markets. The Communications Solutions segment supplies electronic components, such as terminals and connector systems and components, relays, heat shrink tubing, and antennas for the data and devices, and appliances markets. The company sells its products to approximately 140 countries primarily through direct sales to manufacturers, as well as through third-party distributors. The company was formerly known as Tyco Electronics Ltd. and changed its name to TE Connectivity Ltd. in March 2011. TE Connectivity Ltd. was founded in 1941 and is based in Schaffhausen, Switzerland.
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