Reviewing Eastman Kodak (NYSE:KODK) and Trans-Lux (OTCMKTS:TNLX)

Trans-Lux (OTCMKTS:TNLX) and Eastman Kodak (NYSE:KODK) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.

Insider & Institutional Ownership

11.9% of Trans-Lux shares are held by institutional investors. Comparatively, 33.7% of Eastman Kodak shares are held by institutional investors. 58.7% of Trans-Lux shares are held by insiders. Comparatively, 23.9% of Eastman Kodak shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

Trans-Lux has a beta of -0.66, meaning that its stock price is 166% less volatile than the S&P 500. Comparatively, Eastman Kodak has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Trans-Lux and Eastman Kodak, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trans-Lux	0	0	0	0	0.00
Eastman Kodak	1	0	0	0	1.00

Profitability

This table compares Trans-Lux and Eastman Kodak’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trans-Lux	N/A	N/A	N/A
Eastman Kodak	1.06%	2.32%	0.76%

Earnings & Valuation

This table compares Trans-Lux and Eastman Kodak”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trans-Lux	$15.55 million	0.01	-$4.07 million	($0.33)	-0.03
Eastman Kodak	$1.05 billion	0.68	$102.00 million	($0.33)	-22.35

Eastman Kodak has higher revenue and earnings than Trans-Lux. Eastman Kodak is trading at a lower price-to-earnings ratio than Trans-Lux, indicating that it is currently the more affordable of the two stocks.

Summary

Eastman Kodak beats Trans-Lux on 9 of the 11 factors compared between the two stocks.

About Trans-Lux

Trans-Lux Corporation engages in the design and manufacture of digital display solutions and fixed digit scoreboards. It operates in two segments, Digital Product Sales; and Digital Product Lease and Maintenance. The Digital Product Sales segment sells indoor and outdoor digital product signage products. The Digital Product Lease and Maintenance segment is involved in the lease and maintenance of indoor and outdoor digital product signage. The company offers LED display systems for use by sports arenas and stadiums; financial institutions, including brokerage firms, banks, energy companies, insurance companies, and mutual fund companies; educational institutions; outdoor advertising companies; corporate and government communication centers; retail outlets; casinos, racetracks and other gaming establishments; airports, train stations, bus terminals, and other transportation facilities; movie theatres; and health maintenance organizations, as well as in various other applications. It also provides TLVision, which consists of full-color video products for use in posting alphanumeric data and displaying of full HD video; and turnkey installation and support services. The company markets its products through direct sales representatives, and a network of independent dealers and distributors in the United States and Canada; and internal salespeople and independent distributors in the rest of North America, Europe, the Middle East, South America, Africa, the Far East, and Australia. Trans-Lux Corporation was incorporated in 1920 and is headquartered in New York, New York. Trans-Lux Corporation operates as a subsidiary of Unilumin North America Inc.

About Eastman Kodak

Eastman Kodak Company engages in the provision of hardware, software, consumables, and services to customers in the commercial print, packaging, publishing, manufacturing, and entertainment markets worldwide. The company operates through three segments: Print, Advanced Materials and Chemicals, and Brand. The Print segment provides digital offset plate offerings and computer-to-plate imaging solutions; press systems and components under the PROSPER brand name, as well as print inks and primers under the KODAK OPTIMAX, KODACHROME, and KODAK EKTACOLOR brand names; and PRINERGY, a workflow production software, which is used by customers to manage digital and conventional print content from file creation to output. This segment offers its products to commercial industries, including commercial print, direct mail, book publishing, newspapers and magazines, décor, and packaging/labels. The Advanced Materials and Chemicals segment engages in industrial film and chemicals, motion picture, advanced materials and functional printing, and IP licensing and analytical activities. This segment also comprises the Kodak Research Laboratories, which conducts research, develops new product or new business opportunities, and files patent applications for its inventions and innovations, as well as manages licensing of its intellectual property to third parties. The Brand segment engages in the licensing of Kodak brand to third parties. The company is also involved in the operation of Eastman Business Park, a technology center and industrial complex. It sells its products and services through direct sales, third party resellers, dealers, channel partners, and distributors. The company was founded in 1880 and is headquartered in Rochester, New York.