Financial Review: Sigma Designs (OTCMKTS:SIGM) versus Kopin (NASDAQ:KOPN)

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

Analyst Recommendations

This is a summary of recent recommendations for Sigma Designs and Kopin, as provided by MarketBeat.

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

Kopin has a consensus price target of $2.56, indicating a potential upside of 73.14%. Given Kopin’s stronger consensus rating and higher probable upside, analysts plainly believe Kopin is more favorable than Sigma Designs.

Valuation & Earnings

This table compares Sigma Designs 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
Sigma Designs	$65.90 million	N/A	-$120.04 million	N/A	N/A
Kopin	$50.34 million	4.77	-$19.75 million	($0.36)	-4.11

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

Institutional & Insider Ownership

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

Profitability

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

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

Risk and Volatility

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

Summary

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

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.

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.