Universal Electronics (NASDAQ:UEIC – Get Free Report) and Kopin (NASDAQ:KOPN – Get Free Report) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.
Volatility & Risk
Universal Electronics has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500. Comparatively, Kopin has a beta of 2.85, meaning that its share price is 185% more volatile than the S&P 500.
Insider and Institutional Ownership
79.4% of Universal Electronics shares are held by institutional investors. Comparatively, 31.0% of Kopin shares are held by institutional investors. 9.4% of Universal Electronics shares are held by insiders. Comparatively, 2.8% of Kopin shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Universal Electronics | 0 | 0 | 2 | 0 | 3.00 |
| Kopin | 0 | 0 | 3 | 0 | 3.00 |
Universal Electronics presently has a consensus target price of $14.50, suggesting a potential upside of 118.87%. Kopin has a consensus target price of $2.58, suggesting a potential upside of 17.16%. Given Universal Electronics’ higher probable upside, equities analysts plainly believe Universal Electronics is more favorable than Kopin.
Profitability
This table compares Universal Electronics and Kopin’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Universal Electronics | -5.48% | -3.19% | -1.57% |
| Kopin | -28.70% | -87.81% | -22.85% |
Earnings and Valuation
This table compares Universal Electronics and Kopin”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Universal Electronics | $394.88 million | 0.22 | -$24.03 million | ($1.66) | -3.99 |
| Kopin | $50.33 million | 7.13 | -$43.88 million | ($0.11) | -20.05 |
Universal Electronics has higher revenue and earnings than Kopin. Kopin is trading at a lower price-to-earnings ratio than Universal Electronics, indicating that it is currently the more affordable of the two stocks.
Summary
Universal Electronics beats Kopin on 9 of the 13 factors compared between the two stocks.
About Universal Electronics
Universal Electronics Inc. designs, develops, manufactures, ships, and supports control and sensor technology solutions in the United States, the People’s Republic of China, rest of Asia, Europe, Latin America, and internationally. The company offers voice-enabled automatically-programmed universal two-way radio frequency, as well as infrared remote controls to video service providers, original equipment manufacturers (OEMs), retailers, and private label customers; wall-mount and handheld thermostat controllers and connected accessories for smart energy management systems to OEM customers, hotels, hospitality, and system integrators; proprietary and standards-based RF sensors for residential security, safety, and home automation applications; and integrated circuits on which its software and universal device control database is embedded to OEMs, video service providers, and private label customers. It also provides software, firmware and technology solutions that can enable devices such as Smart TVs, hybrid set-top boxes, audio systems, smart speakers, game consoles, and other consumer electronic and smart home devices to wirelessly connect and interoperate within home networks; cloud-services that support its embedded software and hardware solutions; intellectual property that the company licenses to OEMs and video service providers; embedded and cloud-enabled software for firmware update provisioning and digital rights management validation services to consumer electronics brands; and AV accessories, including universal remote controls, television wall mounts and stands, and digital television antennas. In addition, the company QuickSet, a software application that can be embedded in entertainment or smart home platform or can be delivered as a cloud-based service, through QuickSet Cloud, to enable universal device setup, interoperability, and control. Universal Electronics Inc. was incorporated in 1986 and is based in Scottsdale, Arizona.
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.
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