Reviewing Key Tronic (NASDAQ:KTCC) & Eastman Kodak (NYSE:KODK)

Key Tronic (NASDAQ:KTCC) and Eastman Kodak (NYSE:KODK) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Valuation and Earnings

This table compares Key Tronic and Eastman Kodak”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Key Tronic	$467.87 million	0.09	-$8.32 million	($1.60)	-2.32
Eastman Kodak	$1.07 billion	0.86	-$128.00 million	($1.88)	-5.00

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Key Tronic	-4.40%	-7.24%	-2.48%
Eastman Kodak	-12.60%	-21.13%	-7.37%

Risk & Volatility

Key Tronic has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Eastman Kodak has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Key Tronic and Eastman Kodak, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Key Tronic	1	0	0	0	1.00
Eastman Kodak	0	1	0	0	2.00

Insider & Institutional Ownership

40.7% of Key Tronic shares are owned by institutional investors. Comparatively, 33.7% of Eastman Kodak shares are owned by institutional investors. 7.9% of Key Tronic shares are owned by company insiders. Comparatively, 21.3% of Eastman Kodak shares are owned 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.

Summary

Key Tronic beats Eastman Kodak on 7 of the 12 factors compared between the two stocks.

About Key Tronic

Key Tronic Corporation provides contract manufacturing services to original equipment manufacturers in the United States and internationally. The company offers integrated electronic and mechanical engineering, assembly, sourcing and procurement, logistics, and new product testing services. Its services include product design; surface mount technologies and pin through hole capability for printed circuit board assembly; tool making; precision plastic molding; sheet metal fabrication and painting; liquid injection molding; complex assembly; prototype design; and full product assembly services. The company manufactures and sells keyboards and other input devices. It markets its products and services primarily through field sales people and distributors. Key Tronic Corporation was incorporated in 1969 and is headquartered in Spokane Valley, Washington.

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.