LightPath Technologies (NASDAQ:LPTH – Get Free Report) and FormFactor (NASDAQ:FORM – Get Free Report) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.
Risk & Volatility
LightPath Technologies has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, FormFactor has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for LightPath Technologies and FormFactor, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LightPath Technologies | 0 | 0 | 2 | 0 | 3.00 |
| FormFactor | 0 | 4 | 4 | 0 | 2.50 |
Insider and Institutional Ownership
56.3% of LightPath Technologies shares are owned by institutional investors. Comparatively, 98.8% of FormFactor shares are owned by institutional investors. 5.2% of LightPath Technologies shares are owned by insiders. Comparatively, 1.0% of FormFactor 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.
Profitability
This table compares LightPath Technologies and FormFactor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LightPath Technologies | -25.24% | -24.55% | -15.46% |
| FormFactor | 17.20% | 4.18% | 3.43% |
Earnings & Valuation
This table compares LightPath Technologies and FormFactor”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LightPath Technologies | $31.73 million | 1.83 | -$8.01 million | ($0.18) | -8.33 |
| FormFactor | $705.94 million | 5.07 | $82.39 million | $1.32 | 35.11 |
FormFactor has higher revenue and earnings than LightPath Technologies. LightPath Technologies is trading at a lower price-to-earnings ratio than FormFactor, indicating that it is currently the more affordable of the two stocks.
Summary
FormFactor beats LightPath Technologies on 10 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 FormFactor
FormFactor, Inc. designs, manufactures, and sells probe cards, analytical probes, probe stations, metrology systems, thermal systems, and cryogenic systems to semiconductor companies and scientific institutions in the United States, Taiwan, South Korea, China, Europe, Japan, Malaysia, Singapore, and internationally. It operates in two segments, Probe Cards and Systems. The company offers probe cards to test various semiconductor device types, including systems on a chip products, mobile application processors, microprocessors, microcontrollers, and graphic processors, as well as radio frequency, analog, mixed signal, image sensor, electro-optical, dynamic random access memory, NAND flash memory, and NOR flash memory devices, as well as computer processor devices; and analytical probes, which are used for a range of applications, including device characterization, electrical simulation model development, failure analysis, and prototype design debugging for universities, research institutions, semiconductor integrated device manufacturers, semiconductor foundries, and fabless semiconductor companies. It also provides probe systems for semiconductor design engineers to capture and analyze accurate data; surface metrology systems for the development, production, and quality control of semiconductor products; thermal subsystems, such as thermal chucks and other test systems used in probe stations and other applications; and precision cryogenic instruments, semiconductor tests, and measurement systems. In addition, the company offers on-site probe card maintenance and service training, seminars, and telephone support services. It markets and sells its products through direct sales force, manufacturers' representatives, and distributors. The company was incorporated in 1993 and is headquartered in Livermore, California.
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