Head-To-Head Analysis: SMC (OTCMKTS:SMCAY) and Eastman Kodak (NYSE:KODK)

Eastman Kodak (NYSE:KODK) and SMC (OTCMKTS:SMCAY) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Institutional and Insider Ownership

33.6% of Eastman Kodak shares are owned by institutional investors. Comparatively, 1.0% of SMC shares are owned by institutional investors. 21.3% of Eastman Kodak shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Eastman Kodak and SMC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eastman Kodak	-12.60%	-21.13%	-7.37%
SMC	19.84%	8.15%	7.40%

Earnings and Valuation

This table compares Eastman Kodak and SMC”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eastman Kodak	$1.07 billion	0.75	-$128.00 million	($1.88)	-4.38
SMC	$5.60 billion	4.52	$1.10 billion	$0.88	22.52

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

Analyst Ratings

This is a summary of current ratings and price targets for Eastman Kodak and SMC, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eastman Kodak	1	0	0	0	1.00
SMC	0	2	1	0	2.33

Risk and Volatility

Eastman Kodak has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500. Comparatively, SMC has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.

Summary

SMC beats Eastman Kodak on 10 of the 13 factors compared between the two stocks.

About Eastman Kodak

Eastman Kodak Company engages in the provision of hardware, software, consumables, and services to customers in the commercial print, packaging, publishing, manufacturing, and entertainment markets worldwide. The company operates through three segments: Print, Advanced Materials and Chemicals, and Brand. The Print segment provides digital offset plate offerings and computer-to-plate imaging solutions; press systems and components under the PROSPER brand name, as well as print inks and primers under the KODAK OPTIMAX, KODACHROME, and KODAK EKTACOLOR brand names; and PRINERGY, a workflow production software, which is used by customers to manage digital and conventional print content from file creation to output. This segment offers its products to commercial industries, including commercial print, direct mail, book publishing, newspapers and magazines, décor, and packaging/labels. The Advanced Materials and Chemicals segment engages in industrial film and chemicals, motion picture, advanced materials and functional printing, and IP licensing and analytical activities. This segment also comprises the Kodak Research Laboratories, which conducts research, develops new product or new business opportunities, and files patent applications for its inventions and innovations, as well as manages licensing of its intellectual property to third parties. The Brand segment engages in the licensing of Kodak brand to third parties. The company is also involved in the operation of Eastman Business Park, a technology center and industrial complex. It sells its products and services through direct sales, third party resellers, dealers, channel partners, and distributors. The company was founded in 1880 and is headquartered in Rochester, New York.

About SMC

SMC Corporation manufactures, processes, and sells automatic control equipment, sintered filters, and various types of filtration equipment worldwide. The company offers air management system, directional control valves, air cylinders, rotatory actuators/air grippers, electric actuators/cylinders, fitting and tubing, and modular F.R.L./pressure control equipment, as well as vacuum, air preparation, and lubrication equipment. It also provides flow control equipment, speed controllers, silencers/exhaust/blow guns/pressure gauges, switches/sensors/controllers, static neutralization equipment, and industrial device communication equipment/wireless system. In addition, the company offers process valves, chemical liquid valves/fittings and needle valves/tubing, process pumps, temperature control equipment, and process gas equipment, as well as high vacuum equipment, industrial filters/sintered metal elements, and pneumatic instrumentation and hydraulic equipment. The company was formerly known as Shoketsu Kinzoku Kogyo Co., Ltd. and changed its name to SMC Corporation in April 1986. SMC Corporation was incorporated in 1959 and is headquartered in Tokyo, Japan.