Head-To-Head Analysis: Alps Electric (OTCMKTS:APELY) and Kopin (NASDAQ:KOPN)

Alps Electric (OTCMKTS:APELY) and Kopin (NASDAQ:KOPN) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Alps Electric and Kopin, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alps Electric	0	1	0	0	2.00
Kopin	1	1	6	0	2.62

Kopin has a consensus price target of $7.17, indicating a potential upside of 51.20%. Given Kopin’s stronger consensus rating and higher probable upside, analysts plainly believe Kopin is more favorable than Alps Electric.

Risk & Volatility

Alps Electric has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, Kopin has a beta of 3.57, suggesting that its stock price is 257% more volatile than the S&P 500.

Institutional & Insider Ownership

0.1% of Alps Electric shares are held by institutional investors. Comparatively, 31.0% of Kopin shares are held by institutional investors. 10.4% of Alps Electric shares are held by company insiders. Comparatively, 2.6% of Kopin shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Alps Electric and Kopin”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alps Electric	$6.77 billion	0.45	$177.41 million	$1.74	16.87
Kopin	$39.32 million	22.41	$2.61 million	$0.04	118.50

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

Profitability

This table compares Alps Electric and Kopin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alps Electric	2.64%	7.24%	4.09%
Kopin	18.26%	14.79%	8.42%

Summary

Kopin beats Alps Electric on 10 of the 14 factors compared between the two stocks.

About Alps Electric

Alps Alpine Co., Ltd. manufactures and sells electronic components in Japan and internationally. It operates through four segments: Components, Sensor Communication, Module Systems, and Logistics. The company’s products for the consumer, industrial equipment, and IoT markets include TACT switches, worker condition monitoring systems, HAPTIC reactor, actuator for cameras, remote monitoring system for logistics, analog meter monitoring system, resistive position sensor, pressure sensor, air environment sensor module, three-axis geomagnetic sensor, humidity sensor, and pc board mount current sensor. Its products for the automotive market comprises TACT and detector switches, Encoder, aspherical glass lens with metal holder, HAPTIC reactor, trimagic converter, current sensor, magnetic sensor, millimeter-wave sensor, GNSS module, 5G NR module, power window switch, electric shifter, sound system, cabin controller, smart door trim, electric shifter, integrated display, premium sound speakers, and customized car products. The company also provides systems development, office, and financing and leasing services, as well as transportation, storage, and forwarding services. The company was formerly known as Alps Electric Co., Ltd. and changed its name to Alps Alpine Co., Ltd. in January 2019. The company was incorporated in 1948 and is headquartered in Tokyo, Japan.

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.