Analyzing AAC Technologies (OTCMKTS:AACAY) and LightPath Technologies (NASDAQ:LPTH)

LightPath Technologies (NASDAQ:LPTH) and AAC Technologies (OTCMKTS:AACAY) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

Valuation and Earnings

This table compares LightPath Technologies and AAC Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LightPath Technologies	$37.20 million	9.41	-$14.87 million	($0.36)	-21.42
AAC Technologies	$3.80 billion	1.52	$249.99 million	$0.06	82.17

AAC Technologies has higher revenue and earnings than LightPath Technologies. LightPath Technologies is trading at a lower price-to-earnings ratio than AAC Technologies, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

LightPath Technologies has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, AAC Technologies has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for LightPath Technologies and AAC Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LightPath Technologies	1	1	4	0	2.50
AAC Technologies	0	0	0	0	0.00

LightPath Technologies currently has a consensus price target of $6.50, suggesting a potential downside of 15.69%. Given LightPath Technologies’ stronger consensus rating and higher probable upside, research analysts clearly believe LightPath Technologies is more favorable than AAC Technologies.

Profitability

This table compares LightPath Technologies and AAC Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LightPath Technologies	-39.92%	-53.40%	-18.17%
AAC Technologies	N/A	N/A	N/A

Institutional & Insider Ownership

56.3% of LightPath Technologies shares are held by institutional investors. 24.8% of LightPath Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

AAC Technologies beats LightPath Technologies on 8 of the 14 factors compared between the two stocks.

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.

About AAC Technologies

AAC Technologies Holdings Inc., an investment holding company, provides solutions for smart devices in Mainland China, Hong Kong Special Administrative Region of the People's Republic of China, Taiwan, other Asian countries, the United States, and Europe. The company operates through Acoustics Product, Electromagnetic Drives and Precision Mechanics, Optics Products, Sensor and Semiconductor Products, and other products segments. It provides acoustics products for smartphones, laptops, mid-range tablets, and smart glasses; and manufactures and sells haptic motors that are used in smartphones, smart watches, tablets, intelligent automobiles, game controllers, and virtual reality/augmented reality controllers. The company also offers precision mechanics comprising metal casing products; optical lenses, camera modules, and optical actuators, as well as voice coil motor products; and micro electro-mechanical systems (MEMS) and ASIC chips design, packaging, and testing services for consumer electronics, automotive, smart wearables, robotics, IoT, and other sectors. In addition, it provides research and development services; manufactures and sells tooling and precision components, electronic components, and related accessories; and provides electroplating services, as well as engages in investment activities. The company was formerly known as AAC Acoustic Technologies Holdings Inc. and changed its name to AAC Technologies Holdings Inc. in May 2011. AAC Technologies Holdings Inc. was founded in 1993 and is headquartered in Shenzhen, the People's Republic of China.