Tower Semiconductor (TSEM) & LightPath Technologies (LPTH) Head to Head Comparison

Tower Semiconductor (NASDAQ:TSEM) and LightPath Technologies (NASDAQ:LPTH) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.

Valuation and Earnings

This table compares Tower Semiconductor and LightPath Technologies’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tower Semiconductor $1.39 billion 1.09 $298.01 million $2.21 6.92
LightPath Technologies $32.53 million 1.47 $1.06 million $0.04 46.25

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

Volatility & Risk

Tower Semiconductor has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500. Comparatively, LightPath Technologies has a beta of -0.74, indicating that its share price is 174% less volatile than the S&P 500.

Profitability

This table compares Tower Semiconductor and LightPath Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tower Semiconductor 18.43% 15.82% 9.98%
LightPath Technologies 3.26% 3.75% 2.65%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Tower Semiconductor and LightPath Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tower Semiconductor 0 0 7 0 3.00
LightPath Technologies 0 1 2 0 2.67

Tower Semiconductor currently has a consensus target price of $26.50, indicating a potential upside of 73.20%. LightPath Technologies has a consensus target price of $2.88, indicating a potential upside of 55.41%. Given Tower Semiconductor’s stronger consensus rating and higher possible upside, research analysts plainly believe Tower Semiconductor is more favorable than LightPath Technologies.

Institutional and Insider Ownership

46.7% of Tower Semiconductor shares are held by institutional investors. Comparatively, 28.0% of LightPath Technologies shares are held by institutional investors. 1.0% of Tower Semiconductor shares are held by company insiders. Comparatively, 12.8% of LightPath Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Tower Semiconductor beats LightPath Technologies on 11 of the 14 factors compared between the two stocks.

Tower Semiconductor Company Profile

Tower Semiconductor Ltd., an independent semiconductor foundry, manufactures and markets analog intensive mixed-signal semiconductor devices in the United States, Japan, Asia, and Europe. The company provides various customizable process technologies, including SiGe, BiCMOS, mixed-signal/CMOS, RF CMOS, CMOS image sensor, integrated power management, and MEMS. It also offers transfer optimization and development process services to integrated device manufacturers and fabless companies. The company serves various markets, such as automotive, medical, industrial, consumer, aerospace and defense, and others. Tower Semiconductor Ltd. was founded in 1993 and is headquartered in Migdal Haemek, Israel.

LightPath Technologies Company Profile

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 materials used to produce products that manipulate light. Its products are used in various industries, including 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 industries. The company sells its products directly to customers in North America, Europe, and China, as well as through distributors and channel partners in the United States and internationally. LightPath Technologies, Inc. was founded in 1985 and is headquartered in Orlando, Florida.

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