Cirrus Logic (NASDAQ:CRUS – Get Free Report) and LightPath Technologies (NASDAQ:LPTH – Get Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.
Profitability
This table compares Cirrus Logic and LightPath Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cirrus Logic | 17.19% | 18.15% | 14.80% |
| LightPath Technologies | -25.86% | -26.51% | -16.55% |
Risk and Volatility
Cirrus Logic has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, LightPath Technologies has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cirrus Logic | 0 | 2 | 5 | 0 | 2.71 |
| LightPath Technologies | 0 | 0 | 3 | 0 | 3.00 |
Cirrus Logic currently has a consensus price target of $132.50, suggesting a potential upside of 25.95%. LightPath Technologies has a consensus price target of $4.67, suggesting a potential upside of 41.41%. Given LightPath Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe LightPath Technologies is more favorable than Cirrus Logic.
Insider & Institutional Ownership
88.0% of Cirrus Logic shares are owned by institutional investors. Comparatively, 56.3% of LightPath Technologies shares are owned by institutional investors. 1.0% of Cirrus Logic shares are owned by company insiders. Comparatively, 1.2% of LightPath Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Cirrus Logic and LightPath Technologies”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cirrus Logic | $1.91 billion | 2.93 | $274.57 million | $5.90 | 17.83 |
| LightPath Technologies | $32.05 million | 4.08 | -$8.01 million | ($0.22) | -15.00 |
Cirrus Logic has higher revenue and earnings than LightPath Technologies. LightPath Technologies is trading at a lower price-to-earnings ratio than Cirrus Logic, indicating that it is currently the more affordable of the two stocks.
Summary
Cirrus Logic beats LightPath Technologies on 9 of the 14 factors compared between the two stocks.
About Cirrus Logic
Cirrus Logic, Inc., a fabless semiconductor company, develops low-power high-precision mixed-signal processing solutions in China, the United States, and internationally. The company offers audio products, including amplifiers; codecs components that integrate analog-to-digital converters (ADCs) and digital-to-analog converters (DACs) into a single integrated circuit (IC); smart codecs, a codec with integrated digital signal processing; standalone digital signal processors; and SoundClear technology, which consists of a portfolio of tools, software, and algorithms that helps to enhance user experience with features, such as louder, high-fidelity sound, audio playback, voice capture, and hearing augmentation for use in smartphones, tablets, laptops, AR/VR headsets, home theater systems, automotive entertainment systems, and professional audio systems. It also provides high-performance mixed-signal products comprising camera controllers, haptic and sensing solutions, and battery and power ICs for use in smartphones, as well as legacy industrial and energy applications, such as digital utility meters, power supplies, energy control, energy measurement, and energy exploration. The company markets and sells its products through direct sales force, external sales representatives, and distributors. Cirrus Logic, Inc. was incorporated in 1984 and is headquartered in Austin, Texas.
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 components used to produce products that manipulate light; and infrared products, including catalog and custom infrared optics. Its products are used in 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 sectors. The company sells its products directly to customers in Europe and Asia. LightPath Technologies, Inc. was founded in 1985 and is headquartered in Orlando, Florida.
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