Flex (NASDAQ:FLEX – Get Free Report) and Lightwave Logic (NASDAQ:LWLG – Get Free Report) are both technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.
Institutional and Insider Ownership
94.3% of Flex shares are owned by institutional investors. Comparatively, 27.0% of Lightwave Logic shares are owned by institutional investors. 0.6% of Flex shares are owned by insiders. Comparatively, 2.2% of Lightwave Logic shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Flex and Lightwave Logic”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Flex | $27.91 billion | 1.23 | $880.00 million | $2.59 | 35.92 |
| Lightwave Logic | $240,000.00 | 3,025.59 | -$20.31 million | ($0.16) | -29.44 |
Flex has higher revenue and earnings than Lightwave Logic. Lightwave Logic is trading at a lower price-to-earnings ratio than Flex, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Flex and Lightwave Logic, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Flex | 0 | 3 | 8 | 1 | 2.83 |
| Lightwave Logic | 1 | 1 | 1 | 0 | 2.00 |
Flex currently has a consensus target price of $128.70, suggesting a potential upside of 38.34%. Lightwave Logic has a consensus target price of $10.00, suggesting a potential upside of 112.31%. Given Lightwave Logic’s higher probable upside, analysts plainly believe Lightwave Logic is more favorable than Flex.
Risk & Volatility
Flex has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500. Comparatively, Lightwave Logic has a beta of 2.4, meaning that its stock price is 140% more volatile than the S&P 500.
Profitability
This table compares Flex and Lightwave Logic’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Flex | 3.32% | 23.15% | 5.50% |
| Lightwave Logic | -9,143.60% | -30.34% | -28.76% |
Summary
Flex beats Lightwave Logic on 11 of the 15 factors compared between the two stocks.
About Flex
Flex Ltd. provides technology, supply chain, and manufacturing solutions in Asia, the Americas, and Europe. It operates through three segments: Flex Agility Solutions (FAS), Flex Reliability Solutions (FRS), and Nextracker. The FAS segment offers flexible supply and manufacturing system comprising communications, enterprise and cloud solution, which includes data, edge, and communications infrastructure; lifestyle solution including appliances, consumer packaging, floorcare, micro mobility, and audio; and consumer devices, such as mobile and high velocity consumer devices. Its FRS segment provides complex ramps with specialized production models and critical environments, which comprise automotive including next generation mobility, autonomous, connectivity, electrification, and smart technologies; health solutions, such as medical devices, medical equipment, and drug delivery; and industrial solutions including capital equipment, industrial devices, and renewables and grid edge. The Nextracker segment offers solar tracker and software solutions, which are used in utility-scale and ground-mounted distributed generation solar projects. In addition, it provides a broad array of services including design and engineering, component services, rapid prototyping, fulfillment, and circular economy solutions. The company was formerly known as Flextronics International Ltd. and changed its name to Flex Ltd. in September 2016. Flex Ltd. was founded in 1969 and is headquartered in Singapore.
About Lightwave Logic
Lightwave Logic, Inc. focuses on the development of photonic devices and electro-optical polymer materials systems for fiber-optic data communications, telecommunications, and optical computing markets in the United States. The company is involved in the designing and synthesizing of organic chromophores for use in its electro-optic polymer systems and photonic device designs. It also offers electro-optic modulators, which converts data from electric signals to optical signals for transmission over fiber-optic cables; and polymer photonic integrated circuits, a photonic device, which integrates various photonic functions on a single chip. In addition, the company provides the ridge waveguide modulator, a modulator that fabricates the waveguide within a layer of its electro-optic polymer system. It focuses on selling its products to electro-optic device manufacturers, contract manufacturers, original equipment manufacturers, foundries, packaging and assembly manufacturers, etc.; and semiconductor companies, optical network companies, Web 2.0/3.0 media companies, computing companies, telecommunications companies, aerospace companies, automotive companies, and government agencies and defense entities. The company was formerly known as Third-order Nanotechnologies, Inc. and changed its name to Lightwave Logic, Inc. in March 2008. Lightwave Logic, Inc. was founded in 1991 and is headquartered in Englewood, Colorado.
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