Critical Review: NVIDIA (NVDA) & LightPath Technologies (LPTH)

NVIDIA (NASDAQ:NVDA) and LightPath Technologies (NASDAQ:LPTH) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Institutional and Insider Ownership

69.8% of NVIDIA shares are owned by institutional investors. Comparatively, 26.7% of LightPath Technologies shares are owned by institutional investors. 4.7% of NVIDIA shares are owned by company insiders. Comparatively, 12.8% of LightPath Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for NVIDIA and LightPath Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NVIDIA 3 10 25 0 2.58
LightPath Technologies 0 1 1 0 2.50

NVIDIA currently has a consensus target price of $202.06, suggesting a potential upside of 9.40%. LightPath Technologies has a consensus target price of $3.00, suggesting a potential upside of 101.34%. Given LightPath Technologies’ higher probable upside, analysts clearly believe LightPath Technologies is more favorable than NVIDIA.

Valuation & Earnings

This table compares NVIDIA and LightPath Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NVIDIA $11.72 billion 9.59 $4.14 billion $6.07 30.43
LightPath Technologies $32.53 million 1.18 $1.06 million $0.04 37.25

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

Dividends

NVIDIA pays an annual dividend of $0.64 per share and has a dividend yield of 0.3%. LightPath Technologies does not pay a dividend. NVIDIA pays out 10.5% of its earnings in the form of a dividend. NVIDIA has raised its dividend for 6 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
NVIDIA 35.35% 41.78% 28.78%
LightPath Technologies -0.44% -0.42% -0.32%

Risk and Volatility

NVIDIA has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500. Comparatively, LightPath Technologies has a beta of -0.21, indicating that its stock price is 121% less volatile than the S&P 500.

Summary

NVIDIA beats LightPath Technologies on 13 of the 17 factors compared between the two stocks.

NVIDIA Company Profile

NVIDIA Corporation operates as a visual computing company worldwide. It operates in two segments, GPU and Tegra Processor. The GPU segment offers processors, which include GeForce for PC gaming and mainstream PCs; GeForce NOW for cloud-based game-streaming service; Quadro for design professionals working in computer-aided design, video editing, special effects, and other creative applications; Tesla for artificial intelligence (AI) utilizing deep learning, accelerated computing, and general purpose computing; GRID, which provides power of NVIDIA graphics through the cloud and datacenters; DGX for AI scientists, researchers, and developers; and cryptocurrency-specific graphics processing units. The Tegra Processor segment provides processors that are primarily designed to enable branded platforms – DRIVE and SHIELD; DRIVE AGX automotive computers and software stacks, which offer self-driving capabilities; Clara AGX for intelligent medical instruments; SHIELD devices and services designed for mobile-cloud in home entertainment, AI, and gaming applications; and Jetson AGX, an AI computing platform for robotics and other embedded use. The company's products are used in gaming, professional visualization, datacenter, and automotive markets. NVIDIA Corporation sells its products to original equipment manufacturers, original device manufacturers, system builders, add-in board manufacturers, retailers/distributors, Internet and cloud service providers, automotive manufacturers and tier-1 automotive suppliers, mapping companies, start-ups, and other ecosystem participants. The company was founded in 1993 and is headquartered in Santa Clara, California.

LightPath Technologies Company Profile

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 materials used to produce products that manipulate light. Its products are used in various industries, including 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 industries. The company sells its products directly to customers in North America, Europe, and China, as well as through distributors and channel partners in the United States and internationally. LightPath Technologies, Inc. was founded in 1985 and is headquartered in Orlando, Florida.

Receive News & Ratings for NVIDIA Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NVIDIA and related companies with MarketBeat.com's FREE daily email newsletter.