TearLab (OTCMKTS: TEAR) and LightPath Technologies (NASDAQ:LPTH) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.
Risk & Volatility
TearLab has a beta of 2.71, suggesting that its share price is 171% more volatile than the S&P 500. Comparatively, LightPath Technologies has a beta of -0.66, suggesting that its share price is 166% less volatile than the S&P 500.
This table compares TearLab and LightPath Technologies’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TearLab||$28.01 million||0.11||-$19.92 million||($2.98)||-0.13|
|LightPath Technologies||$28.37 million||2.07||$7.70 million||$0.31||7.71|
LightPath Technologies has higher revenue and earnings than TearLab. TearLab is trading at a lower price-to-earnings ratio than LightPath Technologies, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
12.2% of TearLab shares are owned by institutional investors. Comparatively, 32.6% of LightPath Technologies shares are owned by institutional investors. 12.0% of TearLab shares are owned by insiders. Comparatively, 12.7% of LightPath Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This is a summary of current recommendations and price targets for TearLab and LightPath Technologies, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
TearLab presently has a consensus target price of $5.75, suggesting a potential upside of 1,374.36%. LightPath Technologies has a consensus target price of $2.80, suggesting a potential upside of 17.15%. Given TearLab’s higher probable upside, equities research analysts clearly believe TearLab is more favorable than LightPath Technologies.
This table compares TearLab and LightPath Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
LightPath Technologies beats TearLab on 9 of the 12 factors compared between the two stocks.
TearLab Company Profile
TearLab Corporation is an in-vitro diagnostic company. The Company has commercialized a tear testing platform, the TearLab Osmolarity System, which enables eye care practitioners to test for sensitive and specific biomarkers using nanoliters of tear film at the point-of-care. The Company, through its subsidiary TearLab Research, Inc., develops technologies to enable eye care practitioners to test a range of biomarkers (chemistries, metabolites, genes and proteins) at the point-of-care. Its product, the TearLab Osmolarity System, enables the measurement of tear osmolarity in the doctor’s office. The TearLab Osmolarity System consists of approximately three components: the TearLab disposable, the TearLab Pen, and the TearLab Reader. The TearLab disposable is a single-use microfluidic microchip. The TearLab Pen is a hand-held device that interfaces with the TearLab disposable. The TearLab Reader is a small desktop unit that allows for the docking of the TearLab Pen.
LightPath Technologies Company Profile
LightPath Technologies, Inc. is a manufacturer and integrator of families of precision molded aspheric optics, fiber-optic collimator, GRADIUM glass lenses and other optical materials used to produce products that manipulate light. The Company designs, develops, manufactures and distributes optical components and assemblies utilizing the optical processes and manufacturing technologies. The Company also performs research and development for optical solutions for the traditional optics markets and communications markets. The Company’s products are incorporated into a range of applications by its customers 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.
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