Reviewing nLIGHT (NASDAQ:LASR) and Solar Enertech (OTCMKTS:SOEN)

nLIGHT (NASDAQ:LASR) and Solar Enertech (OTCMKTS:SOEN) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.

Earnings & Valuation

This table compares nLIGHT and Solar Enertech”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
nLIGHT	$209.92 million	2.63	-$41.67 million	($1.03)	-11.06
Solar Enertech	N/A	N/A	N/A	N/A	N/A

Solar Enertech has lower revenue, but higher earnings than nLIGHT.

Profitability

This table compares nLIGHT and Solar Enertech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
nLIGHT	-24.16%	-19.53%	-15.91%
Solar Enertech	N/A	N/A	N/A

Institutional & Insider Ownership

83.9% of nLIGHT shares are held by institutional investors. 6.1% of nLIGHT shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for nLIGHT and Solar Enertech, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
nLIGHT	0	0	3	0	3.00
Solar Enertech	0	0	0	0	0.00

nLIGHT currently has a consensus price target of $16.17, indicating a potential upside of 41.94%. Given nLIGHT’s stronger consensus rating and higher possible upside, equities analysts clearly believe nLIGHT is more favorable than Solar Enertech.

Volatility and Risk

nLIGHT has a beta of 2.33, suggesting that its share price is 133% more volatile than the S&P 500. Comparatively, Solar Enertech has a beta of 55.06, suggesting that its share price is 5,406% more volatile than the S&P 500.

Summary

nLIGHT beats Solar Enertech on 6 of the 10 factors compared between the two stocks.

About nLIGHT

nLIGHT, Inc. designs, develops, manufactures, and sells semiconductor and fiber lasers for industrial, microfabrication, and aerospace and defense applications. The company operates in two segments, Laser Products and Advanced Development. It offers semiconductor lasers with various ranges of power levels, wavelengths, and output fiber sizes; and programmable and serviceable fiber lasers for use in industrial and aerospace and defense applications. The company also provides laser sensors, including light detection and ranging technologies for intelligence, surveillance, and reconnaissance applications; and fiber amplifiers, beam combination, and control systems for use in high-energy laser systems in directed energy applications. It sells its products through direct sales force in the United States, China, South Korea, and European countries, as well as through independent sales representatives and distributors in Asia, Australia, Europe, the Middle East, and South America. The company was formerly known as nLight Photonics Corporation and changed its name to nLIGHT, Inc. in January 2016. nLIGHT, Inc. was incorporated in 2000 and is headquartered in Camas, Washington.

About Solar Enertech

Solar EnerTech Corp. operates as a photovoltaic (PV) solar energy cell manufacturing company. Its principal products include monocrystalline silicon and polycrystalline silicon solar cells and modules. The company’s solar cells convert sunlight to electricity through the PV effect. It also designs and produces advanced PV modules for various applications, such as standard panels for solar power stations, roof panels, solar arrays, and modules incorporated directly into exterior walls. The company markets its products primarily to solar panel installers, who incorporate those modules into their power generating systems that are sold to end-customers located in Europe, Australia, North America, and China. It markets its solar cells and modules under the SolarE brand name. The company was formerly known as Safer Residence Corporation and changed its name to Solar EnerTech Corp. in April 2006. Solar EnerTech Corp. was incorporated in 2004 is headquartered in Mountain View, California.