Head to Head Analysis: Kopin (NASDAQ:KOPN) versus Sanmina (SANM)

Sanmina (NASDAQ: SANM) and Kopin (NASDAQ:KOPN) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Sanmina -0.88% 11.61% 5.07%
Kopin -125.76% -37.28% -31.14%

Insider & Institutional Ownership

91.1% of Sanmina shares are held by institutional investors. Comparatively, 44.9% of Kopin shares are held by institutional investors. 5.1% of Sanmina shares are held by company insiders. Comparatively, 8.7% of Kopin shares are held 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.

Valuation and Earnings

This table compares Sanmina and Kopin’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sanmina $6.87 billion 0.28 $138.83 million ($0.95) -28.00
Kopin $22.64 million 10.58 -$23.43 million ($0.42) -7.57

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

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sanmina 0 3 2 0 2.40
Kopin 0 1 0 0 2.00

Sanmina presently has a consensus target price of $37.25, indicating a potential upside of 40.04%. Given Sanmina’s stronger consensus rating and higher possible upside, research analysts plainly believe Sanmina is more favorable than Kopin.

Volatility and Risk

Sanmina has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, Kopin has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Summary

Sanmina beats Kopin on 9 of the 14 factors compared between the two stocks.

Sanmina Company Profile

Sanmina Corporation is a provider of integrated manufacturing solutions, components, products and repair, logistics and after-market services. The Company provides its offerings primarily to original equipment manufacturers (OEMs) in various industries, including communications networks, storage, industrial, defense and aerospace, medical and energy. The Company operates through two businesses: Integrated Manufacturing Solutions (IMS) and Components, Products and Services (CPS). IMS consists of printed circuit board assembly and test, final system assembly and test, and direct-order-fulfillment. Its Components include interconnect systems and mechanical systems. Its Products include memory, radio frequency (RF), optical and microelectronics solutions, defense and aerospace products, storage solutions and cloud-based manufacturing execution software. Its Services include design, engineering, logistics and repair services.

Kopin Company Profile

Kopin Corporation is a developer, manufacturer and seller of Wearable technologies, which include components and systems. The Company’s segments are Forth Dimension Displays Ltd. (FDD), the manufacturer of its reflective display products for test and simulation products, and Kopin, which consists of Kopin Corporation, Kowon, Kopin Software Ltd. and e-MDT America (eMDT). Products, which include its components are augmented reality consumer wearable devices for sports and fitness and virtual reality consumer products for recreational and sport drones; military devices, such as thermal weapon sights and fighter pilot helmets, and industrial and public safety devices, such as fire fighter thermal camera enabled masks. Its reflective display products are also configured as spatial light modulators and are used in industrial equipment for three dimensional (3D) Automated Optical Inspection. It sells displays individually or in combination with its other components assembled in a unit.

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