Luna Innovations (NASDAQ: LUNA) is one of 82 publicly-traded companies in the “Advanced Medical Equipment & Technology” industry, but how does it contrast to its competitors? We will compare Luna Innovations to similar businesses based on the strength of its analyst recommendations, profitability, earnings, risk, dividends, valuation and institutional ownership.

Earnings & Valuation

This table compares Luna Innovations and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Luna Innovations $57.27 million $2.29 million -21.85
Luna Innovations Competitors $2.02 billion $430.37 million -56.73

Luna Innovations’ competitors have higher revenue and earnings than Luna Innovations. Luna Innovations is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Luna Innovations has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500. Comparatively, Luna Innovations’ competitors have a beta of 0.89, meaning that their average share price is 11% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Luna Innovations and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Luna Innovations 0 0 1 0 3.00
Luna Innovations Competitors 416 2180 3387 122 2.53

Luna Innovations presently has a consensus target price of $3.00, suggesting a potential upside of 96.08%. As a group, “Advanced Medical Equipment & Technology” companies have a potential downside of 20.84%. Given Luna Innovations’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Luna Innovations is more favorable than its competitors.

Profitability

This table compares Luna Innovations and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Luna Innovations -3.00% -5.00% -3.24%
Luna Innovations Competitors -330.26% -33.54% -12.51%

Institutional and Insider Ownership

10.0% of Luna Innovations shares are held by institutional investors. Comparatively, 53.1% of shares of all “Advanced Medical Equipment & Technology” companies are held by institutional investors. 13.0% of Luna Innovations shares are held by insiders. Comparatively, 16.8% of shares of all “Advanced Medical Equipment & Technology” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Luna Innovations beats its competitors on 7 of the 12 factors compared.

Luna Innovations Company Profile

Luna Innovations Incorporated develops, manufactures and markets fiber optic sensing and test, and measurement products. The Company is focused on bringing technology solutions to measure and monitor processes in the aerospace, automotive, energy, composite, telecommunications and defense industries. The Company operates in two business segments: Products and Licensing, and Technology Development. The Products and Licensing segment develops, manufactures and markets its suite of products, including high-speed optical receiver (HSOR), custom optoelectronic subsystems (Optoelectronics), and Terahertz (THz) products, and fiber optic sensing, as well as test and measurement products. The Technology Development segment performs applied research principally in the areas of sensing and instrumentation, advanced materials and health sciences. The Company’s HSOR transmission products are deployed in the Internet communications equipment infrastructure for high-speed bandwidth.

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