Kopin (NASDAQ: KOPN) and EZchip Semiconductor (NASDAQ:EZCH) are both small-cap technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and price targets for Kopin and EZchip Semiconductor, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kopin 0 1 0 0 2.00
EZchip Semiconductor 0 0 0 0 N/A

Institutional & Insider Ownership

45.1% of Kopin shares are held by institutional investors. 8.9% 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.

Profitability

This table compares Kopin and EZchip Semiconductor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kopin -125.76% -37.28% -31.14%
EZchip Semiconductor 17.05% 6.03% 5.64%

Valuation and Earnings

This table compares Kopin and EZchip Semiconductor’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kopin $22.64 million 10.52 -$23.43 million ($0.42) -7.52
EZchip Semiconductor N/A N/A N/A ($0.17) -149.94

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

Volatility and Risk

Kopin has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, EZchip Semiconductor has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500.

Kopin Company Profile

Kopin Corporation is a developer, manufacturer and seller of Wearable technologies, which include components and systems. The Company’s segments are Forth Dimension Displays Ltd. (FDD), the manufacturer of its reflective display products for test and simulation products, and Kopin, which consists of Kopin Corporation, Kowon, Kopin Software Ltd. and e-MDT America (eMDT). Products, which include its components are augmented reality consumer wearable devices for sports and fitness and virtual reality consumer products for recreational and sport drones; military devices, such as thermal weapon sights and fighter pilot helmets, and industrial and public safety devices, such as fire fighter thermal camera enabled masks. Its reflective display products are also configured as spatial light modulators and are used in industrial equipment for three dimensional (3D) Automated Optical Inspection. It sells displays individually or in combination with its other components assembled in a unit.

EZchip Semiconductor Company Profile

EZchip Semiconductor Ltd.is a fabless semiconductor company that provides data-path processing solutions for a range of applications for carrier, cloud and data center networks. The Company’s portfolio of solutions includes network processors, multi-core processors, network adapters and appliances with a software ecosystem. It designs and sells network processors for networking equipment, integrating several key functions into a single chip. Networking equipment vendors use the Company’s network processors to form the silicon core of networking equipment, such as switches and routers, for voice, video and data integration in a variety of applications. The Company’s network processors are single-chip solutions that enable its customers to design multi-port line cards. Its multi-core processors allow customers to design systems that are high performance, as well as power efficient. The Company’s subsidiaries include EZchip Technologies Ltd., EZchip Inc. and EZchip Semiconductor Inc.

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