Corning (NYSE:GLW) versus Codan (OTCMKTS:CODAF) Critical Contrast

Codan (OTCMKTS:CODAF) and Corning (NYSE:GLW) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.

Dividends

Codan pays an annual dividend of C$0.09 per share and has a dividend yield of 0.4%. Corning pays an annual dividend of $1.12 per share and has a dividend yield of 0.7%. Codan pays out 163.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Corning pays out 51.1% of its earnings in the form of a dividend. Corning is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Codan and Corning”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Codan	N/A	N/A	N/A	C$0.05	454.04
Corning	$15.63 billion	9.13	$1.60 billion	$2.19	75.64

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

Insider and Institutional Ownership

4.7% of Codan shares are owned by institutional investors. Comparatively, 69.8% of Corning shares are owned by institutional investors. 0.3% of Corning shares are owned 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 Ratings

This is a summary of recent ratings for Codan and Corning, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Codan	0	0	0	0	0.00
Corning	0	5	11	0	2.69

Corning has a consensus price target of $174.08, suggesting a potential upside of 5.09%. Given Corning’s stronger consensus rating and higher probable upside, analysts plainly believe Corning is more favorable than Codan.

Profitability

This table compares Codan and Corning’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Codan	N/A	N/A	N/A
Corning	11.20%	20.09%	8.00%

Summary

Corning beats Codan on 12 of the 13 factors compared between the two stocks.

About Codan

Codan Limited develops technology solutions for United Nations organizations, mining companies, security and military groups, government departments, individuals, and small-scale miners. It operates through Communications and Metal Detection segments. The Communications segment designs, develops, manufactures, and markets communication equipment that consists of DTC radio solutions for the wireless transmission of video and other data applications; and Zetron communications solutions. The Metal Detection segment designs, develops, manufactures, and markets metal detection equipment, such as handheld metal detecting technologies for recreational, gold mining, demining, and military markets. The company sells its products through a network of dealers, distributors, and agents in Australia, Canada, Denmark, the United Kingdom, the United States, Brazil, India, Ireland, Mexico, Singapore, the United Arab Emirates, and internationally. Codan Limited was incorporated in 1959 and is headquartered in Mawson Lakes, Australia.

About Corning

Corning Incorporated engages in the display technologies, optical communications, environmental technologies, specialty materials, and life sciences businesses in the United States and internationally. The company's Display Technologies segment offers glass substrates for flat panel displays, including liquid crystal displays and organic light-emitting diodes that are used in televisions, notebook computers, desktop monitors, tablets, and handheld devices. Its Optical Communications segment provides optical fibers and cables; and hardware and equipment products, such as cable assemblies, fiber optic hardware and connectors, optical components and couplers, closures, network interface devices, and other accessories for the telecommunications industry, businesses, governments, and individuals. The company's Specialty Materials segment manufactures products that offer material formulations for glass, glass ceramics, crystals, precision metrology instruments, and software, as well as glass wafers and substrates, tinted sunglasses, and radiation shielding products for various markets comprising mobile consumer electronics, semiconductor equipment optics and consumables, aerospace and defense optics, radiation shielding products, sunglasses, and telecommunications components. Its Environmental Technologies segment provides ceramic substrates and filter products for emissions control in mobile, gasoline, and diesel applications. The company's Life Sciences segment offers laboratory products, including consumables, such as plastic vessels, liquid handling plastics, specialty surfaces, cell culture media, and serum, as well as general labware, and glassware and equipment under the Corning, Pyrex, Falcon, and Axygen brands. The company was formerly known as Corning Glass Works and changed its name to Corning Incorporated in April 1989. Corning Incorporated was founded in 1851 and is headquartered in Corning, New York.