Reviewing Brother Industries (OTCMKTS:BRTHY) & Kopin (NASDAQ:KOPN)

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Brother Industries and Kopin, as reported by MarketBeat.com.

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

Kopin has a consensus price target of $4.69, suggesting a potential upside of 94.50%. Given Kopin’s stronger consensus rating and higher probable upside, analysts clearly believe Kopin is more favorable than Brother Industries.

Valuation and Earnings

This table compares Brother Industries and Kopin”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brother Industries	$5.76 billion	0.89	$361.54 million	$2.88	13.97
Kopin	$50.33 million	8.74	-$43.88 million	($0.04)	-60.25

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.

Profitability

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

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

Institutional and Insider Ownership

31.0% of Kopin shares are owned by institutional investors. 2.8% of Kopin shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

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

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.

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.