Head to Head Survey: LightPath Technologies (LPTH) and Daqo New Energy (DQ)

LightPath Technologies (NASDAQ:LPTH) and Daqo New Energy (NYSE:DQ) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.

Institutional and Insider Ownership

28.0% of LightPath Technologies shares are held by institutional investors. Comparatively, 40.4% of Daqo New Energy shares are held by institutional investors. 12.8% of LightPath Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares LightPath Technologies and Daqo New Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LightPath Technologies $32.53 million 1.47 $1.06 million $0.04 46.25
Daqo New Energy $352.85 million 0.76 $92.84 million $8.50 3.01

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

Analyst Ratings

This is a summary of recent recommendations and price targets for LightPath Technologies and Daqo New Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LightPath Technologies 0 1 2 0 2.67
Daqo New Energy 0 1 2 0 2.67

LightPath Technologies presently has a consensus target price of $2.88, suggesting a potential upside of 55.41%. Daqo New Energy has a consensus target price of $53.00, suggesting a potential upside of 106.87%. Given Daqo New Energy’s higher probable upside, analysts plainly believe Daqo New Energy is more favorable than LightPath Technologies.

Profitability

This table compares LightPath Technologies and Daqo New Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LightPath Technologies 3.26% 3.75% 2.65%
Daqo New Energy 28.32% 23.80% 13.12%

Risk and Volatility

LightPath Technologies has a beta of -0.74, suggesting that its share price is 174% less volatile than the S&P 500. Comparatively, Daqo New Energy has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500.

Summary

Daqo New Energy beats LightPath Technologies on 9 of the 12 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 Daqo New Energy

Daqo New Energy Corp., together with its subsidiaries, manufactures and sells polysilicon and wafers in the People's Republic of China. It operates through two segments, Polysilicon and Wafers. The company offers polysilicon to photovoltaic product manufacturers who further process its polysilicon into ingots, wafers, cells, and modules for solar power solutions. It also provides multi-crystalline wafers. The company was formerly known as Mega Stand International Limited and changed its name to Daqo New Energy Corp. in August 2009. Daqo New Energy Corp. was founded in 2006 and is headquartered in Wanzhou, the People's Republic of China.

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