Critical Review: Eastman Kodak (NYSE:KODK) versus Dell Technologies (NYSE:DELL)

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

Earnings and Valuation

This table compares Dell Technologies and Eastman Kodak”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dell Technologies	$151.20 billion	2.33	$5.94 billion	$17.23	31.58
Eastman Kodak	$1.07 billion	0.83	-$128.00 million	($1.39)	-6.53

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Dell Technologies and Eastman Kodak, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dell Technologies	0	9	26	1	2.78
Eastman Kodak	1	0	0	0	1.00

Dell Technologies presently has a consensus target price of $556.92, indicating a potential upside of 2.35%. Given Dell Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe Dell Technologies is more favorable than Eastman Kodak.

Risk & Volatility

Dell Technologies has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500. Comparatively, Eastman Kodak has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dell Technologies	7.53%	-578.85%	10.64%
Eastman Kodak	-8.28%	-14.47%	-5.55%

Insider and Institutional Ownership

76.4% of Dell Technologies shares are held by institutional investors. Comparatively, 33.6% of Eastman Kodak shares are held by institutional investors. 41.5% of Dell Technologies shares are held by company insiders. Comparatively, 21.3% of Eastman Kodak shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Dell Technologies beats Eastman Kodak on 13 of the 15 factors compared between the two stocks.

About Dell Technologies

Dell Technologies Inc. designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services in the Americas, Europe, the Middle East, Asia, and internationally. The company operates through two segments, Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). The ISG segment provides modern and traditional storage solutions, including all-flash arrays, scale-out file, object platforms, hyper-converged infrastructure, and software-defined storage; and general-purpose and AI-optimized servers. This segment also offers networking products and services comprising wide area network infrastructure, data center and edge networking switches, and cables and optics that help its business customers to transform and modernize their infrastructure, mobilize and enrich end-user experiences, and accelerate business applications and processes; software and peripherals; and consulting, support, and deployment services. The CSG segment provides desktops, workstations, and notebooks; displays, docking stations, keyboards, mice, webcam, and audio devices; and third-party software and peripherals, as well as configuration, support and deployment, and extended warranty services. It is involved in cybersecurity technology-driven security solutions to prevent security breaches, detect malicious activity, respond rapidly when a security breach occurs, and identify emerging threats; originating, collecting, and servicing customer financing arrangements; and the resale of VMware products and services. The company serves enterprises, public institutions, and small and medium-sized businesses through its direct sales channel, value-added resellers, system integrators, distributors, and retailers. The company was formerly known as Denali Holding Inc. and changed its name to Dell Technologies Inc. in August 2016. Dell Technologies Inc. was founded in 1984 and is headquartered in Round Rock, Texas.

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.