I.D. Systems (IDSY) versus Lumentum (LITE) Financial Analysis

I.D. Systems (NASDAQ: IDSY) and Lumentum (NASDAQ:LITE) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.

Insider & Institutional Ownership

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42.6% of I.D. Systems shares are owned by institutional investors. 8.6% of I.D. Systems shares are owned by company insiders. Comparatively, 0.8% of Lumentum shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for I.D. Systems and Lumentum, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
I.D. Systems	0	0	4	0	3.00
Lumentum	0	2	14	0	2.88

I.D. Systems presently has a consensus price target of $9.50, suggesting a potential upside of 46.83%. Lumentum has a consensus price target of $82.50, suggesting a potential upside of 44.61%. Given I.D. Systems’ stronger consensus rating and higher possible upside, analysts clearly believe I.D. Systems is more favorable than Lumentum.

Profitability

This table compares I.D. Systems and Lumentum’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
I.D. Systems	-6.42%	-11.01%	-5.50%
Lumentum	13.63%	23.35%	12.72%

Valuation & Earnings

This table compares I.D. Systems and Lumentum’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
I.D. Systems	$40.95 million	2.79	-$3.87 million	N/A	N/A
Lumentum	$1.00 billion	3.57	-$102.50 million	$1.59	35.88

I.D. Systems has higher earnings, but lower revenue than Lumentum.

Volatility & Risk

I.D. Systems has a beta of 0.26, suggesting that its share price is 74% less volatile than the S&P 500. Comparatively, Lumentum has a beta of 0.06, suggesting that its share price is 94% less volatile than the S&P 500.

I.D. Systems Company Profile

I.D. Systems, Inc. develops, markets, and sells wireless machine-to-machine solutions in the United States and internationally. The company offers integrated wireless solutions that utilize radio frequency identification, Wi-Fi, satellite or cellular communications, sensor technologies, and software to control, track, monitor, and analyze industrial vehicles, rental vehicles, and transportation assets. It provides industrial and rental fleet asset management products, including on-asset hardware with mounting and user-interface options that provide an autonomous means of asset control and monitoring; wireless asset managers that link the mobile assets being monitored with the customer's computer network or to a remotely hosted server; server software, which manages data communications between the system's database and wireless asset managers or on-asset hardware; and client software. The company also offers transportation asset management products comprising on-asset hardware configurations to address various remote asset types; VeriWise Intelligence Portal, a hosted Website that provides Internet access to client asset information; and a direct data feed through XML or Web services. In addition, it provides hosting, maintenance, and customer support and consulting services, as well as software as a service. The company markets and sells its solutions directly to commercial and government sectors in automotive manufacturing, retail, shipping, freight transportation, heavy industry, wholesale distribution, aerospace and defense, homeland security, and vehicle rental markets, as well as through original equipment manufacturers and industrial equipment dealers. I.D. Systems, Inc. was founded in 1993 and is headquartered in Woodcliff Lake, New Jersey.

Lumentum Company Profile

Lumentum Holdings Inc. manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. It operates through two segments, Optical Communications and Commercial Lasers. The Optical Communications segment offers components, modules, and subsystems that enable the transmission and transport of video, audio, and text data over high-capacity fiber optic cables. It offers tunable transponders, transceivers, and transmitter modules; tunable lasers, receivers, and modulators; and transport products comprising reconfigurable optical add/drop multiplexers, amplifiers, and optical channel monitors, as well as components consisting of 980nm, multi-mode, and Raman pumps. This segment also offers Super Transport Blade, which integrates optical transport functions into a single-slot blade; products for 3-D sensing applications, including a light source product; vertical-cavity surface-emitting lasers; distributed feedback and electro-absorption modulated lasers; and individual and compact laser arrays. It serves customers in telecommunications, data communications, and consumer and industrial markets. The Commercial Lasers segment offers diode-pumped solid-state, diode, direct-diode, fiber, and gas lasers. This segment serves customers in markets and applications, such as sheet metal processing, general manufacturing, biotechnology, graphics and imaging, and remote sensing, as well as in precision machining, including drilling in printed circuit boards, wafer singulation, glass cutting, and solar cell scribing. Its lasers products are used in various original equipment manufacturer applications. Lumentum Holdings Inc. was incorporated in 2015 and is headquartered in Milpitas, California.