Eltek (NASDAQ:ELTK) versus LightPath Technologies (NASDAQ:LPTH) Head-To-Head Contrast

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LightPath Technologies	-28.65%	-7.02%	-4.13%
Eltek	-12.66%	-13.57%	-9.01%

Volatility & Risk

LightPath Technologies has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500. Comparatively, Eltek has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Institutional & Insider Ownership

56.3% of LightPath Technologies shares are owned by institutional investors. Comparatively, 64.6% of Eltek shares are owned by institutional investors. 10.9% of LightPath Technologies shares are owned by insiders. Comparatively, 72.0% of Eltek shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LightPath Technologies	1	0	4	1	2.83
Eltek	1	0	0	0	1.00

LightPath Technologies currently has a consensus target price of $13.70, indicating a potential upside of 94.05%. Given LightPath Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe LightPath Technologies is more favorable than Eltek.

Earnings and Valuation

This table compares LightPath Technologies and Eltek”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LightPath Technologies	$71.72 million	6.90	-$20.55 million	($0.40)	-17.65
Eltek	$48.48 million	0.82	$830,000.00	($0.91)	-6.48

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

Summary

LightPath Technologies beats Eltek on 10 of the 15 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 Eltek

Eltek Ltd. manufactures, markets, and sells printed circuit boards (PCBs) in Israel, Europe, North America, India, the Netherlands, and internationally. It offers a range of custom designed PCBs, including rigid, double-sided and multi-layer PCBs, and flexible circuitry boards. The company also provides high density interconnect, flex-rigid, and multi-layered boards. It primarily serves medical technology, defense and aerospace, industrial, telecom, and networking equipment industries, as well as contract electronic manufacturers. The company markets and sells its products primarily through direct sales personnel, sales representatives, and PCB trading and manufacturing companies. Eltek Ltd. was incorporated in 1970 and is headquartered in Petah Tikva, Israel. Eltek Ltd. operates as a subsidiary of Nistec Golan Ltd.