Analyzing Orbit International (OTCMKTS:ORBT) and LightPath Technologies (NASDAQ:LPTH)
by Danessa Lincoln · The Markets DailyLightPath Technologies (NASDAQ:LPTH – Get Free Report) and Orbit International (OTCMKTS:ORBT – Get Free Report) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, dividends, risk and profitability.
Insider and Institutional Ownership
56.3% of LightPath Technologies shares are held by institutional investors. 24.8% of LightPath Technologies shares are held by company insiders. Comparatively, 11.3% of Orbit International shares are held 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 LightPath Technologies and Orbit International, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LightPath Technologies | 1 | 1 | 4 | 0 | 2.50 |
| Orbit International | 0 | 0 | 0 | 0 | 0.00 |
LightPath Technologies presently has a consensus target price of $9.13, indicating a potential upside of 12.65%. Given LightPath Technologies’ stronger consensus rating and higher possible upside, research analysts plainly believe LightPath Technologies is more favorable than Orbit International.
Valuation & Earnings
This table compares LightPath Technologies and Orbit International”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LightPath Technologies | $37.20 million | 9.91 | -$14.87 million | ($0.39) | -20.77 |
| Orbit International | $29.90 million | 0.48 | -$650,000.00 | ($1.38) | -2.96 |
Orbit International has lower revenue, but higher earnings than LightPath Technologies. LightPath Technologies is trading at a lower price-to-earnings ratio than Orbit International, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
LightPath Technologies has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, Orbit International has a beta of 0.1, suggesting that its stock price is 90% less volatile than the S&P 500.
Profitability
This table compares LightPath Technologies and Orbit International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LightPath Technologies | -36.76% | -60.07% | -16.13% |
| Orbit International | -18.70% | -29.85% | -19.72% |
Summary
LightPath Technologies beats Orbit International on 10 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 Orbit International
Orbit International Corp. engages in the design, manufacture, and sale of electronic components and subsystems, and commercial and custom power units for prime contractors, government procurement agencies, and research and development laboratories worldwide. The company operates in two segments, Electronics Group and Power Group. The Electronics Group segment designs, manufactures, and sells customized electronic components and subsystems. This segment offers remote control units, intercommunication panels, displays, keyboards, keypads and pointing devices, operator control trays, and command display units, as well as provides LCD display modules, military simulation and training bezels, electronic control assemblies, and multi-function displays design and enhancement services. The Power Group segment designs and manufactures commercial power units, AC power, frequency converters, uninterruptible power supplies, armament systems, and commercial-off-the-shelf power solutions, as well as inverters. The company was formerly known as Orbit Instrument Corp. and changed its name to Orbit International Corp. in July 1991. Orbit International Corp. was founded in 1957 and is based in Hauppauge, New York.