Lumentum (NASDAQ:LITE) and Track Group (OTCMKTS:TRCK) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.
Valuation and Earnings
This table compares Lumentum and Track Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Lumentum||$1.25 billion||2.96||$248.10 million||$3.24||14.91|
|Track Group||$30.57 million||0.19||-$5.42 million||N/A||N/A|
Risk and Volatility
Lumentum has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, Track Group has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.
This is a summary of current ratings and price targets for Lumentum and Track Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Lumentum presently has a consensus price target of $67.29, indicating a potential upside of 39.33%. Given Lumentum’s higher probable upside, research analysts plainly believe Lumentum is more favorable than Track Group.
Institutional & Insider Ownership
95.3% of Lumentum shares are held by institutional investors. 0.6% of Lumentum shares are held by company insiders. Comparatively, 12.0% of Track Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Lumentum and Track Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Lumentum beats Track Group on 10 of the 12 factors compared between the two stocks.
Lumentum Company Profile
Lumentum Holdings Inc. manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company operates through two segments, Optical Communications and Commercial Lasers. The Optical Communications segment offers components, modules, and subsystems that enable the transmission and transport of video, audio, and text data over high-capacity fiber optic cables. It offers tunable transponders, transceivers, and transmitter modules; tunable lasers, receivers, and modulators; transport products, such as reconfigurable optical add/drop multiplexers, amplifiers, and optical channel monitors, as well as components, including 980nm, multi-mode, and Raman pumps; and switches, attenuators, photodetectors, gain flattening filters, isolators, wavelength-division multiplexing filters, arrayed waveguide gratings, multiplex/de-multiplexers, and integrated passive modules. This segment also provides Super Transport Blade, which integrates optical transport functions into a single-slot blade; optical transceivers for fiber channel and Ethernet applications; integrated fiber optic transceivers; vertical-cavity surface-emitting lasers; distributed feedback and electro-absorption modulated lasers; and laser illumination sources for 3D sensing systems. It serves customers in telecommunications, data communications, and consumer and industrial markets. The Commercial Lasers segment offers diode-pumped solid-state, fiber, diode, direct-diode, and gas lasers for use in original equipment manufacturer applications. It serves customers in markets and applications, such as sheet metal processing, general manufacturing, biotechnology, graphics and imaging, and remote sensing, as well as in precision machining, such as drilling in printed circuit boards, wafer singulation, glass cutting, and solar cell scribing. Lumentum Holdings Inc. was incorporated in 2015 and is headquartered in Milpitas, California.
Track Group Company Profile
Track Group, Inc., together with its subsidiaries, designs, manufactures, and markets location tracking devices; and develops and sells various related software, services, accessories, networking solutions, and monitoring applications. The company's products and services include a portfolio of hardware and software applications, including ReliAlert XC3, a GPS device that enables agencies to track offender movements and communicate directly with offenders through a patented on-board two/three-way voice communication technology; Shadow, an offender tracking device with 3G compliant; TrackerPAL, a cloud-based monitoring system; and TrackerPAL Mobile, a mobile application of the TrackerPAL software for Android and iOS devices. It also provides data analytics services; BACtrack, a smartphone-based remote alcohol monitoring system; Violence Smartphone Application that creates a mobile geo-zone around a survivor of domestic abuse and communicates with the offender's tracking device; InTouch, a smartphone monitoring and supervision application for the criminal justice market to compliment traditional Electronic Monitoring Solutions; SecureCuff steel bands; and RF Beacon, a self-contained and short-range transmitting station that provides a radio frequency signal communicating with assigned offender GPS devices, as well as product support services. Track Group, Inc. sells its products primarily in the United States, Latin American countries, and the Caribbean countries. The company was formerly known as SecureAlert, Inc. and changed its name to Track Group, Inc. in May 2015. Track Group, Inc. was incorporated in 1995 and is headquartered in Naperville, Illinois.
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