Analyzing LightPath Technologies (NASDAQ:LPTH) and Allient (NASDAQ:ALNT)

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

Institutional and Insider Ownership

56.3% of LightPath Technologies shares are owned by institutional investors. Comparatively, 61.6% of Allient shares are owned by institutional investors. 14.7% of LightPath Technologies shares are owned by company insiders. Comparatively, 15.6% of Allient 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.

Earnings and Valuation

This table compares LightPath Technologies and Allient”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LightPath Technologies	$37.20 million	10.15	-$14.87 million	($0.36)	-23.47
Allient	$529.97 million	1.76	$13.17 million	$0.86	63.85

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

Volatility and Risk

LightPath Technologies has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, Allient has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500.

Profitability

This table compares LightPath Technologies and Allient’s 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%
Allient	2.75%	9.97%	4.67%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for LightPath Technologies and Allient, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LightPath Technologies	1	1	4	0	2.50
Allient	0	4	0	0	2.00

LightPath Technologies presently has a consensus target price of $6.50, indicating a potential downside of 23.08%. Allient has a consensus target price of $47.50, indicating a potential downside of 13.49%. Given Allient’s higher possible upside, analysts clearly believe Allient is more favorable than LightPath Technologies.

Summary

Allient beats LightPath Technologies on 11 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 Allient

Allient Inc., together with its subsidiaries, designs, manufactures, and sells precision and specialty controlled motion components and systems for various industries in the United States, Canada, South America, Europe, and Asia-Pacific. It offers brush and brushless DC motors, brushless servo and torque motors, coreless DC motors, integrated brushless motor-drives, gearmotors, gearing, modular digital servo drives, motion controllers, optical encoders, active and passive filters, input/output modules, industrial communications gateways, light-weighting technologies, and other controlled motion-related products, as well as nano precision positioning systems, servo control systems, and digital servo amplifiers and drives. The company sells its products to end customers and original equipment manufacturers in vehicle, medical, aerospace and defense, and industrial markets through direct sales force, authorized manufacturers’ representatives, and distributors. The company was formerly known as Allied Motion Technologies Inc. and changed its name to Allient Inc. in August 2023. Allient Inc. was incorporated in 1962 and is headquartered in Amherst, New York.