Reviewing Eastman Kodak (NYSE:KODK) and Sandisk (NASDAQ:SNDK)

Sandisk (NASDAQ:SNDK) and Eastman Kodak (NYSE:KODK) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, risk, institutional ownership, earnings, dividends and analyst recommendations.

Volatility & Risk

Sandisk has a beta of 5.23, meaning that its share price is 423% more volatile than the S&P 500. Comparatively, Eastman Kodak has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500.

Earnings & Valuation

This table compares Sandisk and Eastman Kodak”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sandisk	$20.25 billion	8.96	$11.43 billion	$72.90	17.22
Eastman Kodak	$1.14 billion	0.81	-$128.00 million	($1.39)	-6.72

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

Profitability

This table compares Sandisk and Eastman Kodak’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sandisk	56.47%	87.84%	66.03%
Eastman Kodak	-8.28%	-14.47%	-5.55%

Analyst Recommendations

This is a summary of current ratings and target prices for Sandisk and Eastman Kodak, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sandisk	0	4	21	3	2.96
Eastman Kodak	1	1	0	0	1.50

Sandisk presently has a consensus target price of $2,093.73, suggesting a potential upside of 66.75%. Given Sandisk’s stronger consensus rating and higher probable upside, equities analysts clearly believe Sandisk is more favorable than Eastman Kodak.

Insider and Institutional Ownership

33.7% of Eastman Kodak shares are owned by institutional investors. 0.3% of Sandisk shares are owned by insiders. Comparatively, 21.3% of Eastman Kodak shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Sandisk beats Eastman Kodak on 13 of the 15 factors compared between the two stocks.

About Sandisk

SanDisk Corporation offers flash storage solutions. The Company designs, develops and manufactures data storage solutions in a range of form factors using flash memory, controller, firmware and software technologies. The Company operates through flash memory storage products segment. Its solutions include a range of solid state drives (SSD), embedded products, removable cards, universal serial bus (USB), drives, wireless media drives, digital media players, and wafers and components. It offers SSDs for client computing applications, which encompass desktop computers, notebook computers, tablets and other computing devices. Its embedded products are used for embedded storage for mobile phones, tablets, notebooks and other portable and wearable devices, as well as in automotive and connected home applications. Its removable products include cards, USB flash drives, Wireless Drives and Digital Media Players at a range of storage capacities. It sells memory wafers and memory components.

About Eastman Kodak

Eastman Kodak Company engages in the provision of hardware, software, consumables, and services to customers in the commercial print, packaging, publishing, manufacturing, and entertainment markets worldwide. The company operates through three segments: Print, Advanced Materials and Chemicals, and Brand. The Print segment provides digital offset plate offerings and computer-to-plate imaging solutions; press systems and components under the PROSPER brand name, as well as print inks and primers under the KODAK OPTIMAX, KODACHROME, and KODAK EKTACOLOR brand names; and PRINERGY, a workflow production software, which is used by customers to manage digital and conventional print content from file creation to output. This segment offers its products to commercial industries, including commercial print, direct mail, book publishing, newspapers and magazines, décor, and packaging/labels. The Advanced Materials and Chemicals segment engages in industrial film and chemicals, motion picture, advanced materials and functional printing, and IP licensing and analytical activities. This segment also comprises the Kodak Research Laboratories, which conducts research, develops new product or new business opportunities, and files patent applications for its inventions and innovations, as well as manages licensing of its intellectual property to third parties. The Brand segment engages in the licensing of Kodak brand to third parties. The company is also involved in the operation of Eastman Business Park, a technology center and industrial complex. It sells its products and services through direct sales, third party resellers, dealers, channel partners, and distributors. The company was founded in 1880 and is headquartered in Rochester, New York.