Reviewing Lantronix (NASDAQ:LTRX) and True Nature (OTCMKTS:TNTY)

Lantronix (NASDAQ:LTRX) and True Nature (OTCMKTS:TNTY) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Risk and Volatility

Lantronix has a beta of 2.14, meaning that its stock price is 114% more volatile than the S&P 500. Comparatively, True Nature has a beta of 2.99, meaning that its stock price is 199% more volatile than the S&P 500.

Earnings & Valuation

This table compares Lantronix and True Nature’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lantronix	$131.19 million	1.02	-$8.98 million	($0.25)	-14.28
True Nature	N/A	N/A	-$3.88 million	N/A	N/A

True Nature has lower revenue, but higher earnings than Lantronix.

Institutional & Insider Ownership

39.4% of Lantronix shares are held by institutional investors. 17.3% of Lantronix shares are held by company insiders. Comparatively, 30.1% of True Nature shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Lantronix and True Nature’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lantronix	-6.67%	-11.89%	-6.06%
True Nature	N/A	N/A	-13,987.90%

Analyst Ratings

This is a summary of current ratings and price targets for Lantronix and True Nature, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lantronix	0	0	4	0	3.00
True Nature	0	0	0	0	N/A

Lantronix currently has a consensus target price of $9.20, indicating a potential upside of 157.70%. Given Lantronix’s higher probable upside, research analysts plainly believe Lantronix is more favorable than True Nature.

About Lantronix

Lantronix, Inc. provides solutions for video surveillance, infotainment systems, and intelligent substations infrastructure in the Americas, Europe, the Middle East, Africa, and the Asia Pacific Japan. The company's IoT products include IoT System Solutions, which provide wired and wireless connections that enhance the value and utility of modern electronic systems and equipment through secure network connectivity, power for IoT end devices through Power over Ethernet, application hosting, protocol conversion, media conversion, secure access for distributed IoT deployments, and various other functions; Embedded IoT Modules, such as application processing delivering compute to meet customer needs for data transformation, computer vision, machine learning, augmented/virtual reality, audio/video aggregation and distribution, and custom applications; and Software and Engineering Services offers SaaS platform that enables customers to deploy, monitor, manage, and automate across their global deployments through a single platform login. It also offers telematics devices, which provides power efficient products designed to support communications across interfaces and industrial protocols for vehicle, fleet, and asset tracking and management; network switches, media converters, power over ethernet, NICS and optical SFPs, system on modules, and development kits; and services for mechanical, hardware, and software engineering for camera, audio, and artificial intelligence/machine learning development. In addition, the company provides console management, power management, and IP connected keyboard-video-mouse products that offers remote access to IT and networking infrastructure deployed in test labs, data centers, branch offices, remote sites, and server rooms; and hardware engineering, software engineering, and mechanical engineering, rapid prototyping and quality assurance engineering services. Lantronix, Inc. was incorporated in 1989 and is based in Irvine, California.

About True Nature

True Nature Holding, Inc. focuses on engaging in compounding pharmacy activities direct to consumers, doctors, and veterinary professionals. It also focuses on the development of software applications in the healthcare arena, including telemedicine; and consideration of services offering using blockchain encryption technology for various aspects of the healthcare industry. The company is based in Atlanta, Georgia.