Texas Instruments (NASDAQ: TXN) and Kopin (NASDAQ:KOPN) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.
This table compares Texas Instruments and Kopin’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and price targets for Texas Instruments and Kopin, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Texas Instruments currently has a consensus target price of $110.54, indicating a potential downside of 0.89%. Given Texas Instruments’ stronger consensus rating and higher possible upside, analysts clearly believe Texas Instruments is more favorable than Kopin.
Texas Instruments pays an annual dividend of $2.48 per share and has a dividend yield of 2.2%. Kopin does not pay a dividend. Texas Instruments pays out 68.7% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares Texas Instruments and Kopin’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Texas Instruments||$14.96 billion||7.33||$3.68 billion||$3.61||30.89|
|Kopin||$27.84 million||9.47||-$26.34 million||($0.37)||-9.46|
Texas Instruments has higher revenue and earnings than Kopin. Kopin is trading at a lower price-to-earnings ratio than Texas Instruments, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Texas Instruments has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, Kopin has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.
Insider and Institutional Ownership
84.3% of Texas Instruments shares are owned by institutional investors. Comparatively, 46.4% of Kopin shares are owned by institutional investors. 1.0% of Texas Instruments shares are owned by insiders. Comparatively, 8.9% of Kopin shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Texas Instruments beats Kopin on 12 of the 15 factors compared between the two stocks.
About Texas Instruments
Texas Instruments Incorporated designs, makes and sells semiconductors to electronics designers and manufacturers across the world. The Company operates through two segments: Analog and Embedded Processing. As of December 31, 2016, the Company had design, manufacturing or sales operations in more than 30 countries. The Company’s Analog segment’s product line includes High Volume Analog & Logic (HVAL), Power Management (Power), High Performance Analog (HPA) and Silicon Valley Analog (SVA). HVAL products support applications, such as automotive safety devices, touchscreen controllers, low-voltage motor drivers and integrated motor controllers. The Company’s Embedded Processing segment’s product line includes Processor, Microcontrollers and Connectivity. Processor products include digital signal processors (DSPs) and applications processors. DSPs perform mathematical computations to process digital data.
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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