Genasys (NASDAQ:GNSS – Get Free Report) and Lumentum (NASDAQ:LITE – Get Free Report) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.
Risk & Volatility
Genasys has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Lumentum has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500.
Valuation & Earnings
This table compares Genasys and Lumentum”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Genasys | $40.76 million | 1.47 | -$18.11 million | ($0.13) | -10.15 |
| Lumentum | $3.01 billion | 25.08 | -$6.94 billion | ($82.21) | -10.15 |
Genasys has higher earnings, but lower revenue than Lumentum. Genasys is trading at a lower price-to-earnings ratio than Lumentum, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Genasys and Lumentum, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Genasys | 1 | 0 | 2 | 0 | 2.33 |
| Lumentum | 1 | 6 | 16 | 0 | 2.65 |
Genasys presently has a consensus target price of $3.87, indicating a potential upside of 192.93%. Lumentum has a consensus target price of $1,078.75, indicating a potential upside of 29.27%. Given Genasys’ higher possible upside, equities research analysts plainly believe Genasys is more favorable than Lumentum.
Profitability
This table compares Genasys and Lumentum’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Genasys | -10.86% | -435.06% | -9.83% |
| Lumentum | -230.15% | 26.34% | 10.25% |
Institutional and Insider Ownership
40.0% of Genasys shares are held by institutional investors. Comparatively, 94.1% of Lumentum shares are held by institutional investors. 8.3% of Genasys shares are held by company insiders. Comparatively, 0.3% of Lumentum 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
Lumentum beats Genasys on 9 of the 14 factors compared between the two stocks.
About Genasys
Genasys Inc. engages in the design, development, and commercialization of critical communications hardware and software solutions to alert, inform, and protect people principally in North and South America, Europe, the Middle East, Asia, and internationally. The company operates through two segments, Hardware and Software. It provides Genasys Protect ALERT, an interactive, cloud-based SaaS solution that is designed to enable SLED and enterprise customers to send critical information to at-risk individuals or groups when an emergency occurs using emails, voice calls, text messages, panic buttons, desktop alerts, TV, social media, and other; and Genasys Protect EVAC that enables responding agencies to determine and communicate the proper scope of a response or evacuation by replacing guesswork with data-driven intelligence; and Genasys Protect CONNECT, an instant communication platform that enables first responders and public safety personnel to collaborate and share information in a single space with text, videos, images, and audio from any location. The company also offers Genasys Protect ACOUSTICS, a mass notification speaker system with Genasys protect command-and-control software; and long range acoustic devices, such as acoustic hailing devices which are used to project alert tones and audible voice messages. It sells its products directly to governments, militaries, end-users, and commercial companies. The company was formerly known as LRAD Corporation. Genasys Inc. was incorporated in 1992 and is based in San Diego, California.
About Lumentum
Lumentum Holdings Inc. manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company operates through two segments: Optical Communications (OpComms) and Commercial Lasers (Lasers). The OpComms segment offers components, modules, and subsystems that enable the transmission and transport of video, audio, and data over high-capacity fiber optic cables. It offers tunable transponders, transceivers, and transmitter modules; tunable lasers, receivers, and modulators; transport products, such as reconfigurable optical add/drop multiplexers, amplifiers, and optical channel monitors, as well as components, including 980nm, multi-mode, and Raman pumps; and switches, attenuators, photodetectors, gain flattening filters, isolators, wavelength-division multiplexing filters, arrayed waveguide gratings, multiplex/de-multiplexers, and integrated passive modules. This segment also provides Super Transport Blade, which integrates optical transport functions into a single-slot blade; vertical-cavity surface-emitting lasers; directly modulated and electro-absorption modulated lasers; and laser illumination sources for 3D sensing systems. It serves customers in telecommunications, data communications, and consumer and industrial markets. The Commercial Lasers segment offers diode-pumped solid-state, fiber, diode, direct-diode, and gas lasers, such as argon-ion and helium-neon lasers for use in original equipment manufacturer applications. It serves customers in markets and applications, such as sheet metal processing, general manufacturing, biotechnology, solar cell processing, graphics and imaging, remote sensing, and precision machining. Lumentum Holdings Inc. was incorporated in 2015 and is headquartered in San Jose, California.
Receive News & Ratings for Genasys Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Genasys and related companies with MarketBeat.com's FREE daily email newsletter.
