Critical Contrast: Benchmark Electronics (NYSE:BHE) versus Lightwave Logic (NASDAQ:LWLG)

Lightwave Logic (NASDAQ:LWLG) and Benchmark Electronics (NYSE:BHE) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Institutional & Insider Ownership

27.0% of Lightwave Logic shares are owned by institutional investors. Comparatively, 92.3% of Benchmark Electronics shares are owned by institutional investors. 2.2% of Lightwave Logic shares are owned by company insiders. Comparatively, 1.1% of Benchmark Electronics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lightwave Logic	-9,143.60%	-30.34%	-28.76%
Benchmark Electronics	1.89%	7.28%	3.81%

Volatility & Risk

Lightwave Logic has a beta of 2.41, suggesting that its stock price is 141% more volatile than the S&P 500. Comparatively, Benchmark Electronics has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Lightwave Logic and Benchmark Electronics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lightwave Logic	1	0	0	0	1.00
Benchmark Electronics	0	0	3	0	3.00

Benchmark Electronics has a consensus price target of $91.00, suggesting a potential upside of 25.09%. Given Benchmark Electronics’ stronger consensus rating and higher possible upside, analysts clearly believe Benchmark Electronics is more favorable than Lightwave Logic.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lightwave Logic	$240,000.00	3,436.71	-$20.31 million	($0.16)	-33.44
Benchmark Electronics	$2.82 billion	0.93	$24.85 million	$1.47	49.49

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

Summary

Benchmark Electronics beats Lightwave Logic on 11 of the 14 factors compared between the two stocks.

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.

About Benchmark Electronics

Benchmark Electronics, Inc., together with its subsidiaries, offers product design, engineering services, technology solutions, and manufacturing services in the Americas, Asia, and Europe. The company provides engineering services and technology solutions, including new product design, prototype, testing, and related engineering services; and custom testing and technology solutions, as well as automation equipment design and build services. It also offers electronics manufacturing and testing services, such as printed circuit board assembly and test solutions, assembly of subsystems, circuitry and functionality testing of printed assemblies, environmental and stress testing, and component reliability testing; component engineering services; manufacturing defect analysis, in-circuit testing, functional testing, and life cycle testing services, as well as environmental stress tests of assemblies of boards or systems; and failure analysis. In addition, the company provides precision machining and electromechanical assembly services; and subsystem and system integration services, including assembly, configuration, and testing for various industries. Further, it provides value-added support systems; supply chain management solutions; direct order fulfillment; and aftermarket non-warranty services, including repair, replacement, refurbishment, remanufacturing, exchange, systems upgrade, and spare parts manufacturing throughout a product’s life cycle. The company serves original equipment manufacturers in the aerospace and defense, medical technologies, complex industrials, semiconductor capital equipment, telecommunications, and advanced computing industries. It markets its services and solutions primarily through a direct sales force. The company was formerly known as Electronics, Inc. Benchmark Electronics, Inc. was founded in 1979 and is headquartered in Tempe, Arizona.