Analyzing LightPath Technologies (NASDAQ:LPTH) & Quantenna Communications (QTNA)

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

Risk & Volatility

LightPath Technologies has a beta of -0.21, meaning that its share price is 121% less volatile than the S&P 500. Comparatively, Quantenna Communications has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.

Earnings & Valuation

This table compares LightPath Technologies and Quantenna Communications’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LightPath Technologies $32.53 million 1.14 $1.06 million $0.04 36.00
Quantenna Communications $220.46 million 4.21 $3.08 million $0.08 303.50

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for LightPath Technologies and Quantenna Communications, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LightPath Technologies 0 1 1 0 2.50
Quantenna Communications 0 6 3 0 2.33

LightPath Technologies presently has a consensus price target of $3.00, suggesting a potential upside of 108.33%. Quantenna Communications has a consensus price target of $22.21, suggesting a potential downside of 8.52%. Given LightPath Technologies’ stronger consensus rating and higher possible upside, equities research analysts plainly believe LightPath Technologies is more favorable than Quantenna Communications.

Institutional & Insider Ownership

26.7% of LightPath Technologies shares are held by institutional investors. Comparatively, 66.1% of Quantenna Communications shares are held by institutional investors. 12.8% of LightPath Technologies shares are held by insiders. Comparatively, 13.5% of Quantenna Communications shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares LightPath Technologies and Quantenna Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LightPath Technologies -0.44% -0.42% -0.32%
Quantenna Communications 1.40% 6.63% 5.57%

Summary

Quantenna Communications beats LightPath Technologies on 12 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 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.

About Quantenna Communications

Quantenna Communications, Inc. designs, develops, and markets wireless communication solutions enabling wireless local area networking in the Asia-Pacific, Europe, the Middle East, Africa, and the Americas. Its solutions portfolio comprises radio frequency chips and digital baseband chips, which support the IEEE Wi-Fi standards, including 802.11n, 802.11ac, and the draft Wi-Fi 6 standard. Quantenna Communications, Inc. offers its products for home networking applications, including home gateways, repeaters, and set-top boxes, as well as retail, outdoor, small and medium business, enterprise, industrial, and consumer electronics applications. The company sells its Wi-Fi solutions directly to original equipment manufacturers and original design manufacturers; and third-party distributors. Quantenna Communications, Inc. was founded in 2005 and is headquartered in San Jose, California.

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