Critical Analysis: LightPath Technologies (NASDAQ:LPTH) vs. Vicor (NASDAQ:VICR)

LightPath Technologies (NASDAQ:LPTH) and Vicor (NASDAQ:VICR) are both 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.

Valuation and Earnings

This table compares LightPath Technologies and Vicor”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	$52.79 million	11.98	-$14.87 million	($0.52)	-21.08
Vicor	$452.70 million	16.02	$118.56 million	$2.61	61.24

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

Risk & Volatility

LightPath Technologies has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Vicor has a beta of 1.97, suggesting that its stock price is 97% more volatile than the S&P 500.

Insider and Institutional Ownership

56.3% of LightPath Technologies shares are held by institutional investors. Comparatively, 47.5% of Vicor shares are held by institutional investors. 24.8% of LightPath Technologies shares are held by insiders. Comparatively, 31.3% of Vicor 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 Vicor’s 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%
Vicor	26.19%	18.73%	16.61%

Analyst Ratings

This is a summary of current recommendations and price targets for LightPath Technologies and Vicor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LightPath Technologies	1	1	4	1	2.71
Vicor	0	1	3	1	3.00

LightPath Technologies presently has a consensus price target of $12.10, indicating a potential upside of 10.40%. Vicor has a consensus price target of $118.33, indicating a potential downside of 25.96%. Given LightPath Technologies’ higher possible upside, analysts plainly believe LightPath Technologies is more favorable than Vicor.

Summary

Vicor beats LightPath Technologies on 11 of the 14 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 Vicor

Vicor Corporation, together with its subsidiaries, designs, develops, manufactures, and markets modular power components and power systems for converting electrical power in the United States, Europe, the Asia Pacific, and internationally. The company offers a range of brick-format DC-DC converters; complementary components provide AC line rectification, input filtering, power factor correction, and transient protection; and input and output voltage, and output power products, as well as electrical and mechanical accessories. It also design, sells, and service custom power systems solutions. The company serves independent manufacturers of electronic devices, original equipment manufacturers, and their contract manufacturers in the aerospace and aviation, defense electronics, satellites, factory automation, instrumentation, test equipment, transportation, telecommunications and networking infrastructure and vehicles, and transportation markets. Vicor Corporation was incorporated in 1981 and is headquartered in Andover, Massachusetts.