Critical Survey: Sunny Optical Technology (Group) (OTCMKTS:SNPTF) and Neogen (NASDAQ:NEOG)

Neogen (NASDAQ:NEOG) and Sunny Optical Technology (Group) (OTCMKTS:SNPTF) are both mid-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Insider and Institutional Ownership

96.7% of Neogen shares are owned by institutional investors. 0.6% of Neogen shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Neogen has a beta of 1.95, suggesting that its stock price is 95% more volatile than the S&P 500. Comparatively, Sunny Optical Technology (Group) has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.

Earnings & Valuation

This table compares Neogen and Sunny Optical Technology (Group)”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neogen	$894.66 million	2.15	-$1.09 billion	($2.77)	-3.20
Sunny Optical Technology (Group)	$5.33 billion	1.40	$375.45 million	N/A	N/A

Sunny Optical Technology (Group) has higher revenue and earnings than Neogen.

Profitability

This table compares Neogen and Sunny Optical Technology (Group)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Neogen	-68.47%	2.14%	1.35%
Sunny Optical Technology (Group)	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Neogen and Sunny Optical Technology (Group), as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neogen	1	3	2	0	2.17
Sunny Optical Technology (Group)	0	0	0	0	0.00

Neogen currently has a consensus price target of $10.67, suggesting a potential upside of 20.39%. Given Neogen’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Neogen is more favorable than Sunny Optical Technology (Group).

Summary

Neogen beats Sunny Optical Technology (Group) on 9 of the 12 factors compared between the two stocks.

About Neogen

Neogen Corporation, together with its subsidiaries, engages in the development, manufacture, and marketing of various products and services dedicated to food and animal safety worldwide. It operates through two segments, Food Safety and Animal Safety. The Food Safety segment offers diagnostic test kits and related products to detect dangerous and unintended substances in food and animal feed, including foodborne pathogens, spoilage organisms, natural toxins, food allergens, genetic modifications, ruminant by-products, meat speciation, drug residues, pesticide residues, and general sanitation concerns; and AccuPoint Advanced rapid sanitation test to detect the presence of adenosine triphosphate, a chemical found in living cells, as well as provides genomics-based diagnostic technology and software systems that help testers to objectively analyze and store their results and perform analysis on the results from multiple locations over extended periods. The segment offers its products primarily to milling and grain, meat and poultry, prepared foods and ingredients, fruits and vegetables, seafood, dairy, beverage, water, healthcare, traditional culture media markets, food service, and dietary supplements markets. The Animal Safety segment provides veterinary instruments, pharmaceuticals, vaccines, topicals, parasiticides, diagnostic products, rodent control products, cleaners, disinfectants, insect control products, and genomics testing services marketed through veterinarians, retailers, livestock producers, and animal health product distributors, for the animal safety market. The segment offers its products for companion animal veterinarians; livestock producers, veterinarians, and breed associations; retailers; breeding and genetics companies; diagnostic labs and universities; distributors; and other manufacturers and government agencies. Neogen Corporation was incorporated in 1981 and is headquartered in Lansing, Michigan.

About Sunny Optical Technology (Group)

Sunny Optical Technology (Group) Company Limited, an investment holding company, engages in designing, researching, developing, manufacturing, and selling optical and optical related products, and scientific instruments. The company's Optical Components segment offers glass spherical and aspherical lenses, handset lens sets, vehicle lens sets, security surveillance lens sets, and other lens sets. Its Optoelectronic Products segment comprise handset camera modules, three dimensional optoelectronic products, vehicle modules, and other optoelectronic modules. The company's Optical Instruments segment includes microscopes and intelligent inspection equipment for testing. Its optoelectronic-related products are used in handsets, digital cameras, vehicle imaging and sensing systems, security surveillance systems, virtual reality/augmented reality, and robots, which are combined with optical, electronic, algorithm, and mechanical technologies. In addition, the company engages in the research and development of infrared and semiconductor technologies; trading of optical instruments and optoelectronics products; property leasing activities; and development, service, and consultation of technology; provision of financing services; and import and export agency services. It operates primarily in the People's Republic of China, rest of Asia, Europe, North America, and internationally. The company was founded in 1984 and is headquartered in Yuyao, China.