Lightwave Logic (NASDAQ:LWLG) vs. Frequency Electronics (NASDAQ:FEIM) Financial Survey

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

Profitability

This table compares Frequency Electronics and Lightwave Logic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Frequency Electronics	3.68%	3.63%	2.49%
Lightwave Logic	-9,143.60%	-30.34%	-28.76%

Earnings & Valuation

This table compares Frequency Electronics and Lightwave Logic”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Frequency Electronics	$63.23 million	9.67	-$900,000.00	$0.25	216.96
Lightwave Logic	$240,000.00	2,453.87	-$20.31 million	($0.16)	-23.88

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

Insider and Institutional Ownership

58.6% of Frequency Electronics shares are held by institutional investors. Comparatively, 27.0% of Lightwave Logic shares are held by institutional investors. 17.3% of Frequency Electronics shares are held by company insiders. Comparatively, 2.2% of Lightwave Logic shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Frequency Electronics has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Lightwave Logic has a beta of 2.42, suggesting that its share price is 142% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Frequency Electronics and Lightwave Logic, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Frequency Electronics	0	2	1	1	2.75
Lightwave Logic	1	1	1	0	2.00

Frequency Electronics presently has a consensus target price of $59.67, indicating a potential upside of 10.00%. Lightwave Logic has a consensus target price of $10.00, indicating a potential upside of 161.78%. Given Lightwave Logic’s higher probable upside, analysts clearly believe Lightwave Logic is more favorable than Frequency Electronics.

Summary

Frequency Electronics beats Lightwave Logic on 10 of the 13 factors compared between the two stocks.

About Frequency Electronics

Frequency Electronics, Inc., together with its subsidiaries, engages in designing, development, and manufacturing of precision time and frequency control products and components for microwave integrated circuit applications. It operates through two segments, FEI-NY and FEI-Zyfer. The FEI-NY segment offers precision time and frequency control products for communication satellites, terrestrial cellular telephone or other ground-based telecommunication stations; and other components and systems for the U.S. military; and provides design and technical support for satellite business. FEI-Zyfer segment offers global positioning system technologies to systems and subsystems for secure communications, both government and commercial, and other locator applications; and engages in sale and support of wireline telecommunications products, including US5G. It markets its products directly and through independent sales representative organizations located in the United States, Europe, and Asia. Frequency Electronics, Inc. was founded in 1961 and is headquartered in Mitchel Field, New York.

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.