Lantronix, Inc. (LTRX) vs Optical Cable Corporation (OCC)

Lantronix, Inc. and Optical Cable Corporation are both Communication Equipment companies. Lantronix, Inc. is the larger, with a market value of $320.2M against $138.9M — 2.3× the size. Lantronix, Inc. has negative trailing earnings, so its P/E is not meaningful; Optical Cable Corporation trades at 54.5×. Optical Cable Corporation grew revenue faster over the last twelve months: 13.9% against −1.65%. Optical Cable Corporation has the higher net margin (3.10% vs −3.46%) and the higher return on invested capital (12.7% vs −4.38%). Across the 19 metrics below, Optical Cable Corporation leads on 11 and Lantronix, Inc. on 8.

Valuation

Metric LTRX OCC Communication Equipment median
P/E n/m 54.48 35.34
P/S 2.27 1.69 2.31
P/B 2.31 9.48 2.32
Price to free cash flow 29.68 340.53 27.50
EV/EBITDA n/m 33.34 14.17
EV/Sales 1.87 1.71 2.42
Earnings yield (1.61%) 1.84% (0.46%)
Free cash flow yield 3.37% 0.29% 1.06%

Profitability

Metric LTRX OCC Communication Equipment median
Gross margin 43.77% 34.28% 39.47%
Operating margin (3.41%) 4.20% 2.39%
Net margin (3.46%) 3.10% (0.80%)
Free cash flow margin 7.66% 0.50% 1.39%
Return on equity (4.32%) 15.56% (1.91%)
Return on assets (2.94%) 6.03% (0.20%)
Return on invested capital (4.38%) 12.73% 0.72%

Growth

Metric LTRX OCC Communication Equipment median
Revenue growth (TTM) (1.65%) 13.86% 11.48%
EPS growth (last fiscal year) 65.52% 66.67% 27.59%
Revenue growth, 5-year CAGR 11.08% 5.73% 4.92%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric LTRX OCC Communication Equipment median
Debt to equity 0.00 0.18 0.06
Current ratio 3.66 2.17 2.01
Net debt to EBITDA 68.48 6.59 0.67

Dividend

Metric LTRX OCC Communication Equipment median
Dividend yield — — 0.94%
Payout ratio — — 0.34

Size

Metric LTRX OCC Communication Equipment median
Market cap 320.19m 138.91m 610.30m

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