Critical Contrast: Kopin (NASDAQ:KOPN) vs. Rockwell Automation (NYSE:ROK)

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Rockwell Automation and Kopin, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rockwell Automation	0	7	10	2	2.74
Kopin	1	0	4	0	2.60

Rockwell Automation currently has a consensus price target of $406.13, indicating a potential downside of 1.96%. Kopin has a consensus price target of $4.69, indicating a potential upside of 58.36%. Given Kopin’s higher possible upside, analysts plainly believe Kopin is more favorable than Rockwell Automation.

Valuation and Earnings

This table compares Rockwell Automation 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
Rockwell Automation	$8.34 billion	5.58	$869.00 million	$7.66	54.08
Kopin	$50.33 million	10.73	-$43.88 million	($0.04)	-74.00

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

Profitability

This table compares Rockwell Automation and Kopin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rockwell Automation	10.42%	32.69%	10.69%
Kopin	-13.81%	-30.97%	-9.76%

Volatility and Risk

Rockwell Automation has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500. Comparatively, Kopin has a beta of 2.7, indicating that its stock price is 170% more volatile than the S&P 500.

Insider & Institutional Ownership

75.8% of Rockwell Automation shares are owned by institutional investors. Comparatively, 31.0% of Kopin shares are owned by institutional investors. 0.8% of Rockwell Automation shares are owned by company insiders. Comparatively, 2.8% of Kopin shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Rockwell Automation beats Kopin on 11 of the 15 factors compared between the two stocks.

About Rockwell Automation

Rockwell Automation, Inc. provides industrial automation and digital transformation solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates through three segments, Intelligent Devices, Software & Control, and Lifecycle Services. Its solutions include hardware and software products and services. The Intelligent Devices segment offers drives, motion, safety, sensing, industrial components, and configured-to-order products. The Software & Control segment provides control and visualization software and hardware, information software, and network and security infrastructure solutions. The Lifecycle Services segment provides consulting, professional services and solutions, and connected and maintenance services. The company sells its solutions primarily through independent distributors in relation with its direct sales force. It serves discrete end markets, including automotive, semiconductor, and warehousing and logistics, as well as general industries comprising printing and publishing, marine, glass, fiber and textiles, airports, and aerospace; hybrid end markets, such as food and beverage, life sciences, household and personal care, and tire, as well as eco industrial, including water/wastewater, waste management, mass transit, and renewable energy; and process end markets comprising oil and gas, mining, metals, chemicals, pulp and paper, and others. Rockwell Automation, Inc. was founded in 1903 and is headquartered in Milwaukee, Wisconsin.

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.