Analyzing ON Semiconductor (ON) & Kopin (KOPN)

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

Volatility and Risk

ON Semiconductor has a beta of 2.02, suggesting that its stock price is 102% more volatile than the S&P 500. Comparatively, Kopin has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
ON Semiconductor 7.22% 22.97% 6.91%
Kopin -125.76% -37.28% -31.14%

Institutional & Insider Ownership

99.8% of ON Semiconductor shares are owned by institutional investors. Comparatively, 45.1% of Kopin shares are owned by institutional investors. 1.4% of ON Semiconductor shares are owned by company insiders. Comparatively, 8.9% of Kopin shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ON Semiconductor 1 7 11 0 2.53
Kopin 0 1 0 0 2.00

ON Semiconductor currently has a consensus price target of $22.09, suggesting a potential downside of 13.11%. Given ON Semiconductor’s stronger consensus rating and higher probable upside, equities research analysts plainly believe ON Semiconductor is more favorable than Kopin.

Valuation and Earnings

This table compares ON Semiconductor 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
ON Semiconductor $3.91 billion 2.76 $182.10 million $0.92 27.63
Kopin $22.64 million 11.88 -$23.43 million ($0.42) -8.50

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

Summary

ON Semiconductor beats Kopin on 12 of the 14 factors compared between the two stocks.

ON Semiconductor Company Profile

ON Semiconductor Corporation offers a portfolio of sensors, power management, connectivity, custom and system on chip (SoC), analog, logic, timing, and discrete devices. The Company’s segments include Power Solutions Group, Analog Solutions Group and Image Sensor Group. The Power Solutions Group offers a range of discrete, module and integrated semiconductor products. The Analog Solutions Group designs and develops analog, mixed-signal and logic application specific integrated circuits (ASICs) and application specific standard products (ASSPs), and power solutions. The Image Sensor Group designs and develops complementary metal oxide semiconductor (CMOS) and charge-coupled device (CCD) image sensors, as well as proximity sensors, image signal processors, and actuator drivers for autofocus and image stabilization for various end users in the automotive, industrial, consumer, wireless, medical, and aerospace/defense markets.

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.

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