Analyzing Eastman Kodak (NYSE:KODK) and Kopin (NASDAQ:KOPN)

Eastman Kodak (NYSE:KODK) and Kopin (NASDAQ:KOPN) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Eastman Kodak	1.06%	2.32%	0.76%
Kopin	-29.47%	-66.91%	-20.69%

Risk and Volatility

Eastman Kodak has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500. Comparatively, Kopin has a beta of 2.98, suggesting that its stock price is 198% more volatile than the S&P 500.

Insider and Institutional Ownership

33.7% of Eastman Kodak shares are owned by institutional investors. Comparatively, 31.0% of Kopin shares are owned by institutional investors. 23.9% of Eastman Kodak shares are owned by insiders. Comparatively, 2.8% of Kopin shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Eastman Kodak and Kopin”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eastman Kodak	$1.05 billion	0.70	$102.00 million	($0.33)	-23.05
Kopin	$45.60 million	9.49	-$43.88 million	($0.04)	-59.25

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Eastman Kodak and Kopin, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eastman Kodak	1	0	0	0	1.00
Kopin	1	0	4	0	2.60

Kopin has a consensus target price of $4.69, indicating a potential upside of 97.78%. Given Kopin’s stronger consensus rating and higher possible upside, analysts plainly believe Kopin is more favorable than Eastman Kodak.

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.

About Kopin

Kopin Corporation, together with its subsidiaries, invents, develops, manufactures, and sells microdisplays, subassemblies, and related components for defense, enterprise, industrial, and consumer products in the United States, the Asia-Pacific, Europe, and internationally. It offers miniature active-matrix liquid crystal displays, liquid crystal on silicon displays/spatial light modulators, organic light emitting diode displays, microLED display technologies, application specific integrated circuits, backlights, and optical lenses; and head-mounted and hand-held VR products. The company’s products are used for soldier thermal weapon rifle sights, avionic fixed and rotary wing pilot helmets, armored vehicle targeting systems, and training and simulation headsets; industrial and medical headsets; 3D optical inspection systems; and consumer augmented reality and virtual reality wearable headsets systems. Kopin Corporation was incorporated in 1984 and is headquartered in Westborough, Massachusetts.