NeoPhotonics (NYSE:NPTN) and Natcore Technology (OTCMKTS:NTCXF) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.
Insider and Institutional Ownership
81.9% of NeoPhotonics shares are owned by institutional investors. 16.7% of NeoPhotonics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares NeoPhotonics and Natcore Technology’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings for NeoPhotonics and Natcore Technology, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
NeoPhotonics currently has a consensus target price of $9.35, suggesting a potential upside of 38.93%. Given NeoPhotonics’ higher probable upside, research analysts clearly believe NeoPhotonics is more favorable than Natcore Technology.
Valuation and Earnings
This table compares NeoPhotonics and Natcore Technology’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NeoPhotonics||$322.54 million||0.97||-$43.64 million||($0.74)||-9.09|
|Natcore Technology||N/A||N/A||-$1.27 million||N/A||N/A|
Natcore Technology has lower revenue, but higher earnings than NeoPhotonics.
Volatility and Risk
NeoPhotonics has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Natcore Technology has a beta of 10.45, meaning that its share price is 945% more volatile than the S&P 500.
NeoPhotonics Company Profile
NeoPhotonics Corporation develops, manufactures, and sells optoelectronic products that transmit, receive, and switch high speed digital optical signals for communications networks. It offers high speed products, including transmitter, receiver, and switching products for 100G (gigabits per second) and optical transmission applications over distances of 2 to 2,000 kilometers; optical components for coherent systems, including narrow linewidth tunable transmit and local oscillator lasers (NLW-ITLA) that generate ultra-pure wavelength or color for coherent transmission, as well as coherent micro-modulators, which encode the information on the intensity and phase of the optical beam; and integrated coherent receivers (ICRs) that decode the phase and polarization encoded coherent signals. The company also engages in developing pluggable coherent modules that combine NLW-ITLA with ICR and a coherent modulator; and offers 100G products for the client side and datacenter applications. In addition, it offers network products and solutions, including application-specific passive optical functionalities in modules or sub-system configurations; transceiver modules for various low speed access and mobile backhaul applications; and products for test and measurement, instrumentation, industrial, and research applications. The company sells its products to network equipment manufacturers through a direct sales force in North America, Europe, and Asia. The company was formerly known as NanoGram Corporation and changed its name to NeoPhotonics Corporation in 2002. NeoPhotonics Corporation was founded in 1996 and is headquartered in San Jose, California.
Natcore Technology Company Profile
Natcore Technology Inc., a research and development company, develops and owns technology for the manufacturing of solar cells. The company offers laser-processed back-contact cells and liquid phase deposition technology, which enables the controlled deposition of silicon dioxide and mixed silicon oxides from an aqueous solution at ambient temperatures and pressures. It focuses on using its nanotechnology discoveries to enable various applications consisting of laser processing, tandem quantum-dot solar cells, and Natcore Foil Cell structure. The company also provides technical consultancy services for the design and construction of solar cell/solar panel fabrication facilities, and solar power plants. Natcore Technology Inc. was founded in 2007 and is headquartered in Rochester, New York.
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