Kopin (NASDAQ:KOPN) & Kimball Electronics (NASDAQ:KE) Financial Analysis

Kopin (NASDAQ:KOPN) and Kimball Electronics (NASDAQ:KE) 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 earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Kopin and Kimball Electronics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kopin	0	0	2	0	3.00
Kimball Electronics	0	0	2	1	3.33

Kopin currently has a consensus target price of $2.63, indicating a potential upside of 3.75%. Kimball Electronics has a consensus target price of $28.00, indicating a potential downside of 8.47%. Given Kopin’s higher possible upside, analysts plainly believe Kopin is more favorable than Kimball Electronics.

Profitability

This table compares Kopin and Kimball Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kopin	-29.47%	-66.91%	-20.69%
Kimball Electronics	1.14%	5.11%	2.57%

Risk and Volatility

Kopin has a beta of 2.96, suggesting that its share price is 196% more volatile than the S&P 500. Comparatively, Kimball Electronics has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500.

Earnings and Valuation

This table compares Kopin and Kimball Electronics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kopin	$50.33 million	8.18	-$43.88 million	($0.09)	-28.11
Kimball Electronics	$1.49 billion	0.50	$16.98 million	$0.67	45.66

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

Institutional & Insider Ownership

31.0% of Kopin shares are owned by institutional investors. Comparatively, 76.0% of Kimball Electronics shares are owned by institutional investors. 2.8% of Kopin shares are owned by company insiders. Comparatively, 2.1% of Kimball Electronics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Kimball Electronics beats Kopin on 10 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 Kimball Electronics

Kimball Electronics, Inc. engages in the provision of electronics manufacturing, engineering, and supply chain support services to customers in the automotive, medical, and industrial end markets. The Company also offers contract manufacturing services, including engineering and supply chain support for the production of electronic assemblies and other products, including non-electronic components, medical devices, medical disposables, and precision molded plastics, as well as automation, test, and inspection equipment primarily used in automotive, medical, and industrial applications. In addition, it is also involved in the production and testing of printed circuit board assemblies, as well as clean room assembly, cold chain, and product sterilization management activities. Further, the company offers design services and support, supply chain services and support, rapid prototyping and new product introduction support, product design and process validation and qualification, industrialization and automation of manufacturing processes, reliability testing, aftermarket services, drug delivery devices and solutions with and without electronics, and product life cycle management services, as well as and assembly of medical, automotive, and industrial products. It operates in the United States, China, Mexico, Poland, Romania, Thailand, India, Japan, Vietnam, and internationally. Kimball Electronics, Inc. was founded in 1961 and is headquartered in Jasper, Indiana.