Corning (GLW) and Microvision (MVIS) Critical Review

Corning (NYSE: GLW) and Microvision (NASDAQ:MVIS) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitabiliy, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Dividends

Corning pays an annual dividend of $0.62 per share and has a dividend yield of 1.9%. Microvision does not pay a dividend. Corning pays out 16.9% of its earnings in the form of a dividend. Microvision has raised its dividend for 6 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Corning 42.69% 11.25% 6.28%
Microvision -156.62% -880.81% -122.93%

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Corning $9.72 billion 3.04 $2.71 billion $3.67 8.75
Microvision $11.85 million 13.05 -$17.41 million ($0.32) -7.09

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

Insider & Institutional Ownership

72.7% of Corning shares are held by institutional investors. Comparatively, 30.9% of Microvision shares are held by institutional investors. 0.6% of Corning shares are held by company insiders. Comparatively, 3.0% of Microvision shares are held by company 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.

Volatility & Risk

Corning has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500. Comparatively, Microvision has a beta of 0.2, suggesting that its stock price is 80% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Corning and Microvision, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Corning 1 8 4 0 2.23
Microvision 0 0 2 0 3.00

Corning presently has a consensus price target of $27.13, suggesting a potential downside of 15.58%. Microvision has a consensus price target of $3.70, suggesting a potential upside of 63.00%. Given Microvision’s stronger consensus rating and higher probable upside, analysts clearly believe Microvision is more favorable than Corning.

Summary

Corning beats Microvision on 10 of the 16 factors compared between the two stocks.

Corning Company Profile

Corning Incorporated is engaged in manufacturing specialty glass and ceramics. Its segments include Display Technologies, Optical Communications, Environmental Technologies, Specialty Materials, Life Sciences and All Other. The Display Technologies segment manufactures glass substrates for flat panel liquid crystal displays (LCDs). The Optical Communications segment manufactures carrier and enterprise network components for the telecommunications industry. The Environmental Technologies segment manufactures ceramic substrates and filters for automotive and diesel emission control applications. As of December 31, 2016, the Specialty Materials segment manufactured products, which provided more than 150 material formulations for glass, glass ceramics and fluoride crystals. The Life Sciences segment manufactures glass and plastic labware, equipment, media and reagents. The All Other segment consists of its Pharmaceutical Technologies business and non-LCD glass business, and among others.

Microvision Company Profile

Microvision, Inc. is a developer of laser beam scanning (LBS) technology. The Company markets its technology under the brand name, PicoP. It has developed PicoP scanning technology that can be adopted by its customers to create high-resolution miniature projection, and three-dimensional sensing and image capture solutions that use laser diodes as the light source. The Company offers key components for inclusion in a scanning engine, including its Micro-Electrical Mechanical Systems (MEMS) and Application-Specific Integrated Circuits (ASICs). Its PicoP scanning technology incorporates its expertise in two-dimensional MEMS, lasers, optics and electronics to create a small form factor scanning engine with lower power needs. It licenses PicoP scanning technology to original design manufacturers (ODMs) or original equipment manufacturers (OEMs). Its technology creates a platform that can support multiple applications and markets, including enterprise, medical, industrial and automotive.

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