TT Electronics (OTCMKTS:TTGPF) vs. LightPath Technologies (NASDAQ:LPTH) Critical Comparison

LightPath Technologies (NASDAQ:LPTH) and TT Electronics (OTCMKTS:TTGPF) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares LightPath Technologies and TT Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LightPath Technologies	-36.76%	-60.07%	-16.13%
TT Electronics	N/A	N/A	N/A

Volatility & Risk

LightPath Technologies has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, TT Electronics has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.

Institutional & Insider Ownership

56.3% of LightPath Technologies shares are owned by institutional investors. 24.8% of LightPath Technologies shares are owned by 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.

Valuation and Earnings

This table compares LightPath Technologies and TT Electronics”s gross 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	10.75	-$14.87 million	($0.39)	-22.56
TT Electronics	$665.93 million	0.53	-$68.24 million	N/A	N/A

LightPath Technologies has higher earnings, but lower revenue than TT Electronics.

Analyst Recommendations

This is a breakdown of current ratings and price targets for LightPath Technologies and TT Electronics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LightPath Technologies	1	1	4	0	2.50
TT Electronics	0	2	0	0	2.00

LightPath Technologies presently has a consensus price target of $9.13, indicating a potential upside of 3.69%. Given LightPath Technologies’ stronger consensus rating and higher possible upside, research analysts plainly believe LightPath Technologies is more favorable than TT Electronics.

Summary

LightPath Technologies beats TT Electronics on 8 of the 12 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 TT Electronics

TT Electronics plc provides design-led advanced electronics technologies for performance critical applications in the healthcare, aerospace and defense, and automation and electrification markets in the United Kingdom, Rest of Europe, North America, Asia, and internationally. The company operates through three segments: Power and Connectivity, Global Manufacturing Solutions, and Sensors and Specialist Components. The Power and Connectivity segment designs and manufactures power application products and connectivity devices, which enable the capture and wireless transfer of data to optimize electronic systems. The Global Manufacturing Solutions segment provides manufacturing services and engineering solutions for its product divisions and to customers that require a lower volume and higher mix of various products. This segment manufactures integrated product assemblies, as well as provides engineering services, including designing testing solutions and value-engineering. The Sensors and Specialist Components segment develops standard and customized solutions, including sensors and power management devices. Its solutions enhance the precision, speed, and reliability of critical aspects of its customers applications. It offers its products and services under the AB Connectors, Aero Stanrew, BI Technologies, Ferranti, IRC, Optek Technology, Precision, Power Partners, PowerPax, Roxspur Measurement and Control, Semelab, Stontronics, Torotel, and Welwyn brands. The company was formerly known as TT Group plc and changed its name to TT Electronics plc in 2000. The company was incorporated in 1906 and is headquartered in Woking, the United Kingdom.