TearLab Corporation (NASDAQ: TEAR) and LightPath Technologies (NASDAQ:LPTH) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitabiliy, earnings and valuation.
Risk & Volatility
TearLab Corporation has a beta of 2.59, meaning that its stock price is 159% more volatile than the S&P 500. Comparatively, LightPath Technologies has a beta of -0.59, meaning that its stock price is 159% less volatile than the S&P 500.
Institutional & Insider Ownership
29.8% of TearLab Corporation shares are held by institutional investors. Comparatively, 27.7% of LightPath Technologies shares are held by institutional investors. 11.6% of TearLab Corporation shares are held by company insiders. Comparatively, 17.1% of LightPath Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares TearLab Corporation and LightPath Technologies’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|TearLab Corporation||$27.95 million||0.35||-$9.93 million||($3.33)||-0.51|
|LightPath Technologies||$24.09 million||2.75||$5.66 million||$0.09||30.56|
LightPath Technologies has higher revenue, but lower earnings than TearLab Corporation. TearLab Corporation is trading at a lower price-to-earnings ratio than LightPath Technologies, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and recommmendations for TearLab Corporation and LightPath Technologies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
TearLab Corporation currently has a consensus target price of $5.75, suggesting a potential upside of 238.24%. LightPath Technologies has a consensus target price of $3.00, suggesting a potential upside of 9.09%. Given TearLab Corporation’s higher possible upside, analysts plainly believe TearLab Corporation is more favorable than LightPath Technologies.
This table compares TearLab Corporation and LightPath Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
LightPath Technologies beats TearLab Corporation on 8 of the 13 factors compared between the two stocks.
TearLab Corporation 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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