Critical Survey: Seiko Epson (OTCMKTS:SEKEY) & Innventure (NASDAQ:INV)

Innventure (NASDAQ:INV) and Seiko Epson (OTCMKTS:SEKEY) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, institutional ownership and valuation.

Analyst Recommendations

This is a summary of recent ratings for Innventure and Seiko Epson, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innventure	2	0	0	0	1.00
Seiko Epson	0	1	0	0	2.00

Innventure currently has a consensus target price of $5.00, suggesting a potential upside of 2,757.14%. Given Innventure’s higher probable upside, analysts clearly believe Innventure is more favorable than Seiko Epson.

Valuation and Earnings

This table compares Innventure and Seiko Epson”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innventure	$2.06 million	7.37	-$293.32 million	($1.54)	-0.11
Seiko Epson	$9.39 billion	0.69	$113.84 million	$0.44	19.82

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

Profitability

This table compares Innventure and Seiko Epson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innventure	-3,022.42%	-21.34%	-17.20%
Seiko Epson	3.12%	5.17%	2.87%

Volatility & Risk

Innventure has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500. Comparatively, Seiko Epson has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.

Institutional and Insider Ownership

56.0% of Innventure shares are owned by institutional investors. 14.3% of Innventure shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Seiko Epson beats Innventure on 9 of the 13 factors compared between the two stocks.

About Innventure

Innventure Inc. (NASDAQ: INV) is a technology commercialization company that identifies promising innovations and helps develop them into standalone businesses. The company works with corporate, university and other research partners to evaluate technologies, build business plans and establish companies intended to bring those innovations to market. Innventure provides services across the commercialization process, including technology assessment, product development, intellectual-property strategy, business formation, fundraising and operational support.

About Seiko Epson

Seiko Epson Corporation is a Japanese technology company best known for its printing and imaging products. Its offerings include inkjet and office printers, scanners, commercial and industrial printing systems, and projectors for business, education, and home use. The company also develops precision products and components, including robotics and factory-automation equipment, microdevices, and electronic components. Its business traces its roots to Daiwa Kogyo, founded in 1942 in Nagano Prefecture, Japan, as a manufacturer of watch components; the company later drew on its timekeeping expertise in connection with the 1964 Tokyo Olympics.