Cirrus Logic (NASDAQ:CRUS) versus LightPath Technologies (NASDAQ:LPTH) Head to Head Review

LightPath Technologies (NASDAQ:LPTH) and Cirrus Logic (NASDAQ:CRUS) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares LightPath Technologies and Cirrus Logic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LightPath Technologies	-25.86%	-26.51%	-16.55%
Cirrus Logic	17.19%	18.15%	14.80%

Analyst Recommendations

This is a summary of recent ratings and price targets for LightPath Technologies and Cirrus Logic, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LightPath Technologies	0	0	2	0	3.00
Cirrus Logic	0	2	5	0	2.71

LightPath Technologies presently has a consensus target price of $3.50, suggesting a potential downside of 0.85%. Cirrus Logic has a consensus target price of $132.50, suggesting a potential upside of 33.06%. Given Cirrus Logic’s higher probable upside, analysts plainly believe Cirrus Logic is more favorable than LightPath Technologies.

Earnings & Valuation

This table compares LightPath Technologies and Cirrus Logic”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LightPath Technologies	$32.05 million	4.37	-$8.01 million	($0.22)	-16.05
Cirrus Logic	$1.91 billion	2.78	$274.57 million	$5.90	16.88

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

Insider & Institutional Ownership

56.3% of LightPath Technologies shares are owned by institutional investors. Comparatively, 88.0% of Cirrus Logic shares are owned by institutional investors. 1.2% of LightPath Technologies shares are owned by company insiders. Comparatively, 1.0% of Cirrus Logic shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

LightPath Technologies has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, Cirrus Logic has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.

Summary

Cirrus Logic 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 Cirrus Logic

Cirrus Logic, Inc., a fabless semiconductor company, develops low-power high-precision mixed-signal processing solutions in China, the United States, and internationally. The company offers audio products, including amplifiers; codecs components that integrate analog-to-digital converters (ADCs) and digital-to-analog converters (DACs) into a single integrated circuit (IC); smart codecs, a codec with integrated digital signal processing; standalone digital signal processors; and SoundClear technology, which consists of a portfolio of tools, software, and algorithms that helps to enhance user experience with features, such as louder, high-fidelity sound, audio playback, voice capture, and hearing augmentation for use in smartphones, tablets, laptops, AR/VR headsets, home theater systems, automotive entertainment systems, and professional audio systems. It also provides high-performance mixed-signal products comprising camera controllers, haptic and sensing solutions, and battery and power ICs for use in smartphones, as well as legacy industrial and energy applications, such as digital utility meters, power supplies, energy control, energy measurement, and energy exploration. The company markets and sells its products through direct sales force, external sales representatives, and distributors. Cirrus Logic, Inc. was incorporated in 1984 and is headquartered in Austin, Texas.