Financial Analysis: Brother Industries (OTCMKTS:BRTHY) and Kopin (NASDAQ:KOPN)

Kopin (NASDAQ:KOPN) and Brother Industries (OTCMKTS:BRTHY) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Kopin and Brother Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kopin	1	0	4	0	2.60
Brother Industries	0	1	0	0	2.00

Kopin currently has a consensus price target of $4.69, indicating a potential upside of 95.31%. Given Kopin’s stronger consensus rating and higher possible upside, research analysts clearly believe Kopin is more favorable than Brother Industries.

Profitability

This table compares Kopin and Brother Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kopin	-13.81%	-30.97%	-9.76%
Brother Industries	6.19%	7.84%	5.88%

Institutional and Insider Ownership

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

Risk and Volatility

Kopin has a beta of 2.93, meaning that its share price is 193% more volatile than the S&P 500. Comparatively, Brother Industries has a beta of 0.02, meaning that its share price is 98% less volatile than the S&P 500.

Earnings & Valuation

This table compares Kopin and Brother Industries”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kopin	$50.33 million	8.70	-$43.88 million	($0.04)	-60.00
Brother Industries	$5.76 billion	0.89	$361.54 million	$2.88	13.97

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

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.

About Brother Industries

Brother Industries, Ltd. manufactures and sells communications and printing equipment in Japan, the Americas, Europe, Asia, Oceania, the Middle East, Africa, and internationally. It operates through Printing & Solutions, Machinery, Domino, Nissei, Personal & Home, and Network & Contents segments. The Printing & Solutions segment offers inkjet printers; all-in-one black-and-white and color laser printers; scanners; and labeling systems, and label and mobile printers. The Machinery segment offers industrial sewing machines, machine tools, and garment printers. The Domino segment offers coding and marking equipment, and digital printing equipment. The Nissei segment provides gearmotors, high stiffness reducers, and gears. The Personal & Home segment provides sewing and cutting machines, sewing and embroidery machines, and commercial embroidery machines. The Network & Contents segment provides online karaoke systems and applications for smartphones/tablets, as well as content, nursing care, and video viewing services; and manages karaoke clubs. The company was formerly known as Nippon Sewing Machine Manufacturing Co. and changed its name to Brother Industries, Ltd. in 1962. Brother Industries, Ltd. was founded in 1908 and is headquartered in Nagoya, Japan.