Financial Analysis: TT Electronics (OTCMKTS:TTGPF) and Lightwave Logic (NASDAQ:LWLG)

Lightwave Logic (NASDAQ:LWLG) and TT Electronics (OTCMKTS:TTGPF) are both small-cap technology companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.

Earnings & Valuation

This table compares Lightwave Logic and TT Electronics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lightwave Logic	$240,000.00	3,976.30	-$20.31 million	($0.16)	-38.69
TT Electronics	$634.73 million	0.50	-$66.73 million	N/A	N/A

Lightwave Logic has higher earnings, but lower revenue than TT Electronics.

Insider and Institutional Ownership

27.0% of Lightwave Logic shares are owned by institutional investors. 2.2% of Lightwave Logic shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Lightwave Logic has a beta of 2.48, suggesting that its share price is 148% more volatile than the S&P 500. Comparatively, TT Electronics has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500.

Profitability

This table compares Lightwave Logic and TT Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lightwave Logic	-9,143.60%	-30.34%	-28.76%
TT Electronics	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations and price targets for Lightwave Logic and TT Electronics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lightwave Logic	1	0	0	0	1.00
TT Electronics	0	0	0	1	4.00

Summary

TT Electronics beats Lightwave Logic on 6 of the 11 factors compared between the two stocks.

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.

About TT Electronics

TT Electronics plc provides design-led advanced electronics technologies for performance critical applications in the healthcare, aerospace and defense, and automation and electrification markets in the United Kingdom, Rest of Europe, North America, Asia, and internationally. The company operates through three segments: Power and Connectivity, Global Manufacturing Solutions, and Sensors and Specialist Components. The Power and Connectivity segment designs and manufactures power application products and connectivity devices, which enable the capture and wireless transfer of data to optimize electronic systems. The Global Manufacturing Solutions segment provides manufacturing services and engineering solutions for its product divisions and to customers that require a lower volume and higher mix of various products. This segment manufactures integrated product assemblies, as well as provides engineering services, including designing testing solutions and value-engineering. The Sensors and Specialist Components segment develops standard and customized solutions, including sensors and power management devices. Its solutions enhance the precision, speed, and reliability of critical aspects of its customers applications. It offers its products and services under the AB Connectors, Aero Stanrew, BI Technologies, Ferranti, IRC, Optek Technology, Precision, Power Partners, PowerPax, Roxspur Measurement and Control, Semelab, Stontronics, Torotel, and Welwyn brands. The company was formerly known as TT Group plc and changed its name to TT Electronics plc in 2000. The company was incorporated in 1906 and is headquartered in Woking, the United Kingdom.