Financial Survey: Lightwave Logic (NASDAQ:LWLG) versus Electro-Sensors (NASDAQ:ELSE)

Electro-Sensors (NASDAQ:ELSE) and Lightwave Logic (NASDAQ:LWLG) are both small-cap technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Profitability

This table compares Electro-Sensors and Lightwave Logic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Electro-Sensors	2.42%	1.73%	1.62%
Lightwave Logic	-9,143.60%	-30.34%	-28.76%

Institutional & Insider Ownership

11.7% of Electro-Sensors shares are owned by institutional investors. Comparatively, 27.0% of Lightwave Logic shares are owned by institutional investors. 13.3% of Electro-Sensors shares are owned by company insiders. Comparatively, 2.2% of Lightwave Logic 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.

Risk and Volatility

Electro-Sensors has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500. Comparatively, Lightwave Logic has a beta of 2.41, indicating that its share price is 141% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Electro-Sensors and Lightwave Logic, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Electro-Sensors	0	1	0	0	2.00
Lightwave Logic	1	0	0	0	1.00

Earnings & Valuation

This table compares Electro-Sensors and Lightwave Logic”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Electro-Sensors	$10.48 million	2.61	$310,000.00	$0.08	96.75
Lightwave Logic	$250,251.00	2,861.55	-$20.31 million	($0.16)	-29.03

Electro-Sensors has higher revenue and earnings than Lightwave Logic. Lightwave Logic is trading at a lower price-to-earnings ratio than Electro-Sensors, indicating that it is currently the more affordable of the two stocks.

Summary

Electro-Sensors beats Lightwave Logic on 9 of the 12 factors compared between the two stocks.

About Electro-Sensors

Electro-Sensors, Inc. engages in the manufacture and selling of industrial production monitoring and process control systems. Its products include shaft speed witches; wireless hazard monitoring; temperature sensor; slide gate and angle position; bearing sensors and belt alignment; and motor drive control. The company was founded by James P. Slattery in 1965 and is headquartered in Minnetonka, MN.

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.