Head-To-Head Survey: Ostin Technology Group (NASDAQ:OST) and LightPath Technologies (NASDAQ:LPTH)

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

Volatility & Risk

Ostin Technology Group has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, LightPath Technologies has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.

Profitability

This table compares Ostin Technology Group and LightPath Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ostin Technology Group	N/A	N/A	N/A
LightPath Technologies	-43.41%	-32.64%	-10.70%

Analyst Recommendations

This is a breakdown of current ratings for Ostin Technology Group and LightPath Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ostin Technology Group	1	0	0	0	1.00
LightPath Technologies	1	1	4	1	2.71

LightPath Technologies has a consensus target price of $12.10, indicating a potential downside of 14.73%. Given LightPath Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe LightPath Technologies is more favorable than Ostin Technology Group.

Earnings and Valuation

This table compares Ostin Technology Group and LightPath Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ostin Technology Group	$39.68 million	0.26	-$10.02 million	N/A	N/A
LightPath Technologies	$37.20 million	22.01	-$14.87 million	($0.52)	-27.29

Ostin Technology Group has higher revenue and earnings than LightPath Technologies.

Institutional and Insider Ownership

21.9% of Ostin Technology Group shares are owned by institutional investors. Comparatively, 56.3% of LightPath Technologies shares are owned by institutional investors. 44.8% of Ostin Technology Group shares are owned by company insiders. Comparatively, 24.8% of LightPath Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

LightPath Technologies beats Ostin Technology Group on 7 of the 13 factors compared between the two stocks.

About Ostin Technology Group

Ostin Technology Group Co., Ltd. designs, develops, and manufactures thin-film transistor liquid crystal display (TFT-LCD) modules and polarizers in China. It offers display modules to markets, such as consumer electronics, including AIOs, monitors, laptop computers, and tablets; automotive displays, including dashboard, and navigation and multimedia systems; and commercial LCD displays, which are used to display multimedia graphics, such as company advertisements, promotions, scoreboards, and traffic signs in education, medical treatment, business, outdoor, and cultural construction industries. The company sells its products directly to customers, as well as to customers' designated system integrators. Ostin Technology Group Co., Ltd. was founded in 2010 and is based in Nanjing, China.

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.