Contrasting Knowles (KN) and Koss (KOSS)

Knowles (NYSE:KN) and Koss (NASDAQ:KOSS) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, dividends, valuation and risk.

Profitability

This table compares Knowles and Koss’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Knowles 8.99% 6.40% 4.68%
Koss -14.36% -2.17% -1.55%

Risk & Volatility

Knowles has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, Koss has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500.

Institutional and Insider Ownership

9.8% of Koss shares are held by institutional investors. 3.7% of Knowles shares are held by company insiders. Comparatively, 71.3% of Koss shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Knowles and Koss’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Knowles $744.20 million 1.85 $68.30 million $0.70 21.77
Koss $23.51 million 0.65 -$3.38 million N/A N/A

Knowles has higher revenue and earnings than Koss.

Analyst Ratings

This is a summary of current ratings and recommmendations for Knowles and Koss, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Knowles 1 2 4 0 2.43
Koss 0 0 0 0 N/A

Knowles currently has a consensus price target of $17.17, indicating a potential upside of 12.64%. Given Knowles’ higher possible upside, equities analysts clearly believe Knowles is more favorable than Koss.

Summary

Knowles beats Koss on 9 of the 11 factors compared between the two stocks.

Knowles Company Profile

Knowles Corporation designs, manufactures, and sells micro-acoustic, audio processing, and precision device solutions to the mobile consumer electronics, industrial, defense, aerospace medical, and telecommunications markets worldwide. The company operates in two segments, Audio and Precision Devices. The Audio segment designs and manufactures audio products, including microphones and balanced armature speakers, signal processing technologies, and software and algorithms used in applications that serve the mobile, ear, and Internet of Things markets. This segment also offers analog and digital micro-electro-mechanical systems, and electret condenser and smart microphones; and ultrasonic sensors and acoustic processors, as well as transducer products used primarily in hearing health and headset applications. The Precision Devices segment designs and delivers engineered capacitors and radio frequency devices for technically demanding applications, such as power supplies, radar, medical implants, and satellites for the industrial, defense, aerospace, medical, and telecommunications markets. The company also provides single layer electronic components to the radio frequency device, microwave, telecommunication, fiber optics, defense, and aerospace markets. It sells its products directly to original equipment manufacturers and to their contract manufacturers and suppliers, as well as through distributors. Knowles Corporation was founded in 1946 and is headquartered in Itasca, Illinois.

Koss Company Profile

Koss Corporation, together with its subsidiaries, designs, manufactures, and sells stereo headphones and related accessories in the United States, People's Republic of China, Czech Republic, Sweden, Malaysia, Canada, Russia, and internationally. It offers high-fidelity headphones, wireless Bluetooth headphones, wireless Bluetooth speakers, computer headsets, telecommunications headsets, and active noise canceling headphones. The company sells its products through national retailers, distributors, audio specialty stores, Internet, direct mail catalogs, regional department store chains, discount department stores, grocery stores, electronics retailers, military exchanges, and prisons under the Koss name, as well as private label. It also sells its products to distributors for resale to school systems, as well as directly to other manufacturers. Koss Corporation was founded in 1953 and is based in Milwaukee, Wisconsin.

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