Kopin (NASDAQ:KOPN – Get Free Report) and EMCORE (NASDAQ:EMKR – Get Free Report) 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 institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.
Volatility and Risk
Kopin has a beta of 2.72, suggesting that its share price is 172% more volatile than the S&P 500. Comparatively, EMCORE has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500.
Institutional and Insider Ownership
31.0% of Kopin shares are held by institutional investors. Comparatively, 65.7% of EMCORE shares are held by institutional investors. 6.7% of Kopin shares are held by insiders. Comparatively, 0.9% of EMCORE shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Kopin | -109.38% | -165.86% | -42.90% |
| EMCORE | -81.08% | -25.05% | -13.56% |
Valuation and Earnings
This table compares Kopin and EMCORE”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kopin | $40.39 million | 4.29 | -$19.75 million | ($0.41) | -2.66 |
| EMCORE | $97.72 million | 0.27 | -$75.36 million | ($8.77) | -0.34 |
Kopin has higher earnings, but lower revenue than EMCORE. Kopin is trading at a lower price-to-earnings ratio than EMCORE, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and target prices for Kopin and EMCORE, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kopin | 0 | 0 | 3 | 0 | 3.00 |
| EMCORE | 0 | 3 | 0 | 0 | 2.00 |
Kopin presently has a consensus price target of $2.67, indicating a potential upside of 144.65%. EMCORE has a consensus price target of $3.00, indicating a potential upside of 1.69%. Given Kopin’s stronger consensus rating and higher probable upside, analysts clearly believe Kopin is more favorable than EMCORE.
Summary
Kopin beats EMCORE on 8 of the 14 factors compared between the two stocks.
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.
About EMCORE
EMCORE Corporation, together with its subsidiaries, designs and manufactures fiber optic gyro, ring laser gyro, and micro electromechanical system-based inertial sensors and systems in the United States and internationally. It offers navigation system and inertial sensing products, such as gyroscopes and multi-axis sensors, inertial measurement units, fiber optic gyroscopes, quartz micro electromechanical systems, inertial navigation systems, tactical navigation, and naval and amphibious navigation, as well as radar positioning and pointing systems, and battlefield/artillery survey systems. The company sells its products through direct sales force, application engineers, third-party sales representatives, and distributors. EMCORE Corporation was founded in 1984 and is headquartered in Alhambra, California.
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