Lightwave Logic (NASDAQ:LWLG – Get Free Report) and Frequency Electronics (NASDAQ:FEIM – Get Free Report) are both small-cap technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Lightwave Logic and Frequency Electronics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lightwave Logic | 1 | 1 | 1 | 0 | 2.00 |
| Frequency Electronics | 0 | 2 | 1 | 1 | 2.75 |
Lightwave Logic currently has a consensus price target of $10.00, suggesting a potential upside of 110.53%. Frequency Electronics has a consensus price target of $59.67, suggesting a potential downside of 11.80%. Given Lightwave Logic’s higher possible upside, research analysts plainly believe Lightwave Logic is more favorable than Frequency Electronics.
Volatility & Risk
Lightwave Logic has a beta of 2.4, meaning that its stock price is 140% more volatile than the S&P 500. Comparatively, Frequency Electronics has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500.
Valuation and Earnings
This table compares Lightwave Logic and Frequency Electronics”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lightwave Logic | $240,000.00 | 3,051.28 | -$20.31 million | ($0.16) | -29.69 |
| Frequency Electronics | $63.23 million | 12.06 | -$900,000.00 | $0.25 | 270.60 |
Frequency Electronics has higher revenue and earnings than Lightwave Logic. Lightwave Logic is trading at a lower price-to-earnings ratio than Frequency Electronics, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Lightwave Logic and Frequency 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% |
| Frequency Electronics | 3.68% | 3.63% | 2.49% |
Institutional and Insider Ownership
27.0% of Lightwave Logic shares are held by institutional investors. Comparatively, 58.6% of Frequency Electronics shares are held by institutional investors. 2.2% of Lightwave Logic shares are held by company insiders. Comparatively, 17.3% of Frequency Electronics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
Frequency Electronics beats Lightwave Logic on 11 of the 14 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 Frequency Electronics
Frequency Electronics, Inc., together with its subsidiaries, engages in designing, development, and manufacturing of precision time and frequency control products and components for microwave integrated circuit applications. It operates through two segments, FEI-NY and FEI-Zyfer. The FEI-NY segment offers precision time and frequency control products for communication satellites, terrestrial cellular telephone or other ground-based telecommunication stations; and other components and systems for the U.S. military; and provides design and technical support for satellite business. FEI-Zyfer segment offers global positioning system technologies to systems and subsystems for secure communications, both government and commercial, and other locator applications; and engages in sale and support of wireline telecommunications products, including US5G. It markets its products directly and through independent sales representative organizations located in the United States, Europe, and Asia. Frequency Electronics, Inc. was founded in 1961 and is headquartered in Mitchel Field, New York.
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