Head to Head Analysis: Sigma Designs (OTCMKTS:SIGM) & Kopin (NASDAQ:KOPN)

Kopin (NASDAQ:KOPN) and Sigma Designs (OTCMKTS:SIGM) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, profitability, valuation and earnings.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Kopin and Sigma Designs, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kopin	0	0	4	0	3.00
Sigma Designs	0	0	0	0	0.00

Kopin presently has a consensus price target of $2.56, suggesting a potential upside of 81.74%. Given Kopin’s stronger consensus rating and higher probable upside, analysts clearly believe Kopin is more favorable than Sigma Designs.

Valuation & Earnings

This table compares Kopin and Sigma Designs”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kopin	$50.34 million	4.54	-$19.75 million	($0.36)	-3.92
Sigma Designs	$65.90 million	N/A	-$120.04 million	N/A	N/A

Kopin has higher earnings, but lower revenue than Sigma Designs.

Profitability

This table compares Kopin and Sigma Designs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kopin	-109.38%	-165.86%	-42.90%
Sigma Designs	N/A	N/A	N/A

Insider and Institutional Ownership

31.0% of Kopin shares are held by institutional investors. 6.7% of Kopin shares are held by company insiders. Comparatively, 4.5% of Sigma Designs shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Kopin has a beta of 3.16, indicating that its share price is 216% more volatile than the S&P 500. Comparatively, Sigma Designs has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500.

Summary

Kopin beats Sigma Designs on 7 of the 11 factors compared between the two stocks.

About Kopin

Kopin Corporation, together with its subsidiaries, invents, develops, manufactures, and sells microdisplays, subassemblies, and related components for defense, enterprise, industrial, and consumer products in the United States, the Asia-Pacific, Europe, and internationally. It offers miniature active-matrix liquid crystal displays, liquid crystal on silicon displays/spatial light modulators, organic light emitting diode displays, microLED display technologies, application specific integrated circuits, backlights, and optical lenses; and head-mounted and hand-held VR products. The company’s products are used for soldier thermal weapon rifle sights, avionic fixed and rotary wing pilot helmets, armored vehicle targeting systems, and training and simulation headsets; industrial and medical headsets; 3D optical inspection systems; and consumer augmented reality and virtual reality wearable headsets systems. Kopin Corporation was incorporated in 1984 and is headquartered in Westborough, Massachusetts.

About Sigma Designs

Sigma Designs, Inc., an integrated system-on-chip solutions provider, provides intelligent platforms for use in the home entertainment, and home and industrial control appliances. The company offers mobile Internet of Things solutions used primarily for tracking applications, such as small tags that can be attached to track pets, keys, children, luggage, and vehicles. It also offers legacy products; and software development kits and engineering support services for hardware and software. The company markets and sells its products through direct sales force, manufacturer representatives, distributors, and resellers to end-product manufacturers, original equipment manufacturers, and original design manufacturers in Asia, North America, Europe, and internationally. Sigma Designs, Inc. was founded in 1982 and is headquartered in Fremont, California.