Analyzing NVIDIA (NASDAQ:NVDA) & Kopin (NASDAQ:KOPN)

NVIDIA (NASDAQ:NVDA) and Kopin (NASDAQ:KOPN) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, profitability, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for NVIDIA and Kopin, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NVIDIA 1 11 29 0 2.68
Kopin 0 0 0 0 N/A

NVIDIA presently has a consensus price target of $260.85, indicating a potential downside of 9.99%. Given NVIDIA’s higher possible upside, analysts clearly believe NVIDIA is more favorable than Kopin.

Earnings and Valuation

This table compares NVIDIA and Kopin’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NVIDIA $11.72 billion 15.14 $4.14 billion $6.07 47.74
Kopin $24.47 million 1.39 -$35.87 million ($0.48) -0.83

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

Profitability

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

Net Margins Return on Equity Return on Assets
NVIDIA 24.08% 22.02% 15.44%
Kopin -116.39% -69.67% -51.34%

Institutional & Insider Ownership

65.2% of NVIDIA shares are held by institutional investors. Comparatively, 27.6% of Kopin shares are held by institutional investors. 4.6% of NVIDIA shares are held by company insiders. Comparatively, 8.9% of Kopin shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

NVIDIA has a beta of 2.04, meaning that its share price is 104% more volatile than the S&P 500. Comparatively, Kopin has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500.

Summary

NVIDIA beats Kopin on 12 of the 13 factors compared between the two stocks.

About NVIDIA

NVIDIA Corp. engages in the design and manufacture of computer graphics processors, chipsets, and related multimedia software. It operates through the Graphics Processing Unit (GPU) and Tegra Processor segments. The GPU segment comprises of product brands which aims specialized markets including GeForce for gamers; Quadro for designers; Tesla and DGX for AI data scientists and big data researchers; and GRID for cloud-based visual computing users. The and Tegra Processor segment integrates an entire computer onto a single chip, and incorporates GPUs and multi-core CPUs to drive supercomputing for autonomous robots, drones, and cars, as well as for consoles and mobile gaming and entertainment devices. The company was founded by Jen-Hsun Huang, Chris A. Malachowsky, and Curtis R. Priem in January 1993 and is headquartered in Santa Clara, CA.

About Kopin

Kopin Corporation invents, develops, manufactures, and sells various components and systems 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, application specific integrated circuits, backlights, optical lenses, and audio integrated circuits, as well as SOLOS smart glasses, which are hands-free head-worn devices that obtain information from sensors or the Internet via a smartphone and displays the information on the sunglass lens. The company's products are used in industrial and public safety applications; consumer augmented and virtual reality wearable headsets; soldier, avionic, and military armored vehicle applications; 3D optical inspection systems; and training and simulation markets. Kopin Corporation was founded in 1984 and is headquartered in Westborough, Massachusetts.

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