Critical Contrast: Eastman Kodak (NYSE:KODK) & Kimball Electronics (NASDAQ:KE)

Kimball Electronics (NASDAQ:KE) and Eastman Kodak (NYSE:KODK) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.

Risk and Volatility

Kimball Electronics has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Eastman Kodak has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500.

Institutional & Insider Ownership

76.0% of Kimball Electronics shares are held by institutional investors. Comparatively, 33.7% of Eastman Kodak shares are held by institutional investors. 2.8% of Kimball Electronics shares are held by company insiders. Comparatively, 23.9% of Eastman Kodak shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kimball Electronics	1.62%	6.28%	3.26%
Eastman Kodak	0.57%	1.72%	0.54%

Earnings and Valuation

This table compares Kimball Electronics 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
Kimball Electronics	$1.48 billion	0.49	$16.98 million	$0.95	31.47
Eastman Kodak	$1.04 billion	0.70	$102.00 million	($0.33)	-22.95

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Kimball Electronics and Eastman Kodak, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kimball Electronics	0	2	2	0	2.50
Eastman Kodak	1	0	0	0	1.00

Kimball Electronics currently has a consensus price target of $32.00, suggesting a potential upside of 7.02%. Given Kimball Electronics’ stronger consensus rating and higher probable upside, analysts clearly believe Kimball Electronics is more favorable than Eastman Kodak.

Summary

Kimball Electronics beats Eastman Kodak on 10 of the 14 factors compared between the two stocks.

About Kimball Electronics

Kimball Electronics, Inc. engages in the provision of electronics manufacturing, engineering, and supply chain support services to customers in the automotive, medical, and industrial end markets. The Company also offers contract manufacturing services, including engineering and supply chain support for the production of electronic assemblies and other products, including non-electronic components, medical devices, medical disposables, and precision molded plastics, as well as automation, test, and inspection equipment primarily used in automotive, medical, and industrial applications. In addition, it is also involved in the production and testing of printed circuit board assemblies, as well as clean room assembly, cold chain, and product sterilization management activities. Further, the company offers design services and support, supply chain services and support, rapid prototyping and new product introduction support, product design and process validation and qualification, industrialization and automation of manufacturing processes, reliability testing, aftermarket services, drug delivery devices and solutions with and without electronics, and product life cycle management services, as well as and assembly of medical, automotive, and industrial products. It operates in the United States, China, Mexico, Poland, Romania, Thailand, India, Japan, Vietnam, and internationally. Kimball Electronics, Inc. was founded in 1961 and is headquartered in Jasper, Indiana.

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.