Covestro (OTCMKTS:COVTY) vs. Lightwave Logic (NASDAQ:LWLG) Head to Head Contrast

Covestro (OTCMKTS:COVTY) and Lightwave Logic (NASDAQ:LWLG) are both basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Risk and Volatility

Covestro has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, Lightwave Logic has a beta of 2.26, suggesting that its share price is 126% more volatile than the S&P 500.

Insider and Institutional Ownership

27.0% of Lightwave Logic shares are held by institutional investors. 4.2% of Lightwave Logic shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Covestro and Lightwave Logic, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Covestro	0	2	0	0	2.00
Lightwave Logic	0	0	0	0	0.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Covestro	-2.74%	-5.84%	-2.78%
Lightwave Logic	-24,492.05%	-64.31%	-57.29%

Valuation and Earnings

This table compares Covestro and Lightwave Logic”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Covestro	$15.34 billion	0.87	-$287.84 million	($1.10)	-32.07
Lightwave Logic	$100,000.00	1,512.98	-$22.53 million	($0.18)	-6.72

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

Summary

Lightwave Logic beats Covestro on 7 of the 12 factors compared between the two stocks.

About Covestro

Covestro AG supplies high-tech polymer materials and application solutions. It operates in two segments, Performance Materials, and Solutions & Specialties. The Performance Materials segment develops, produces, and supplies high-performance materials, such as polyurethanes and polycarbonates, and base chemicals, which include diphenylmethane diisocyanate (MDI), toluylene diisocyanate, long-chain polyols, and polycarbonate resins for use in furniture and wood processing, construction, automotive, and transportation industries, as well as roof structures, insulation for buildings and refrigerators, mattresses, car seats, and other applications. The Solutions & Specialties segment comprises a range of polymer products, including polycarbonates, precursors for coatings and adhesives, MDI specialties and polyols, thermoplastic polyurethanes, specialty films, and elastomers that are used in automotive and transportation, electrical, electronics and household appliances, construction, and healthcare industries, as well as composite resins for solar panel frames, laptops, floodlights, and electric vehicle batteries. The company markets its products through trading houses and distributors. It operates in Europe, the Middle East, Africa, Latin America, the United States, Canada, and the People's Republic of China. The company was founded in 1863 and is headquartered in Leverkusen, Germany.

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.