Head to Head Analysis: Flux Power (NASDAQ:FLUX) and Kopin (NASDAQ:KOPN)

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

Insider and Institutional Ownership

38.0% of Flux Power shares are held by institutional investors. Comparatively, 31.0% of Kopin shares are held by institutional investors. 26.0% of Flux Power shares are held by insiders. Comparatively, 2.8% of Kopin shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Flux Power and Kopin, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flux Power	2	0	3	0	2.20
Kopin	1	0	4	0	2.60

Flux Power presently has a consensus price target of $6.00, suggesting a potential upside of 289.61%. Kopin has a consensus price target of $4.69, suggesting a potential upside of 42.05%. Given Flux Power’s higher probable upside, equities analysts plainly believe Flux Power is more favorable than Kopin.

Valuation and Earnings

This table compares Flux Power and Kopin”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flux Power	$66.43 million	0.49	-$6.67 million	($0.45)	-3.42
Kopin	$50.33 million	11.97	-$43.88 million	($0.04)	-82.50

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

Profitability

This table compares Flux Power and Kopin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flux Power	-11.92%	N/A	-20.04%
Kopin	-13.81%	-30.97%	-9.76%

Volatility and Risk

Flux Power has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500. Comparatively, Kopin has a beta of 2.7, suggesting that its stock price is 170% more volatile than the S&P 500.

Summary

Flux Power beats Kopin on 8 of the 14 factors compared between the two stocks.

About Flux Power

Flux Power Holdings, Inc., through its subsidiary Flux Power, Inc., designs, develops, manufactures, and sells lithium-ion energy storage solutions for lift trucks, airport ground support equipment, and other industrial and commercial applications in the North America. It offers battery management system (BMS) that provides cell balancing, charging, discharging, monitoring, and communication between the pack and the forklift. The company also provides 24-volt onboard chargers for its Class 3 Walkie pallet packs; and smart wall mounted chargers to interface with its BMS. It sells its products directly to small companies and end-users, as well as through original equipment manufacturers, lift equipment dealers, and battery distributors. The company is headquartered in Vista, California.

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.