Reviewing ON Semiconductor (ON) & Kopin (KOPN)

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

Risk and Volatility

Kopin has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, ON Semiconductor has a beta of 2.08, suggesting that its share price is 108% more volatile than the S&P 500.

Insider and Institutional Ownership

44.9% of Kopin shares are owned by institutional investors. Comparatively, 99.8% of ON Semiconductor shares are owned by institutional investors. 8.7% of Kopin shares are owned by company insiders. Comparatively, 1.6% of ON Semiconductor shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Kopin and ON Semiconductor’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kopin $22.64 million 10.58 -$23.43 million ($0.42) -7.57
ON Semiconductor $5.54 billion 1.72 $810.70 million $1.87 12.05

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

Profitability

This table compares Kopin and ON Semiconductor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kopin -125.76% -37.28% -31.14%
ON Semiconductor 14.63% 23.64% 7.39%

Analyst Recommendations

This is a summary of current ratings and price targets for Kopin and ON Semiconductor, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kopin 0 1 0 0 2.00
ON Semiconductor 1 7 11 0 2.53

ON Semiconductor has a consensus price target of $23.76, suggesting a potential upside of 5.43%. Given ON Semiconductor’s stronger consensus rating and higher probable upside, analysts plainly believe ON Semiconductor is more favorable than Kopin.

Summary

ON Semiconductor beats Kopin on 12 of the 14 factors compared between the two stocks.

Kopin Company Profile

Kopin Corporation is a developer, manufacturer and seller of Wearable technologies, which include components and systems. The Company’s segments are Forth Dimension Displays Ltd. (FDD), the manufacturer of its reflective display products for test and simulation products, and Kopin, which consists of Kopin Corporation, Kowon, Kopin Software Ltd. and e-MDT America (eMDT). Products, which include its components are augmented reality consumer wearable devices for sports and fitness and virtual reality consumer products for recreational and sport drones; military devices, such as thermal weapon sights and fighter pilot helmets, and industrial and public safety devices, such as fire fighter thermal camera enabled masks. Its reflective display products are also configured as spatial light modulators and are used in industrial equipment for three dimensional (3D) Automated Optical Inspection. It sells displays individually or in combination with its other components assembled in a unit.

ON Semiconductor Company Profile

ON Semiconductor Corporation offers a portfolio of sensors, power management, connectivity, custom and system on chip (SoC), analog, logic, timing, and discrete devices. The Company’s segments include Power Solutions Group, Analog Solutions Group and Image Sensor Group. The Power Solutions Group offers a range of discrete, module and integrated semiconductor products. The Analog Solutions Group designs and develops analog, mixed-signal and logic application specific integrated circuits (ASICs) and application specific standard products (ASSPs), and power solutions. The Image Sensor Group designs and develops complementary metal oxide semiconductor (CMOS) and charge-coupled device (CCD) image sensors, as well as proximity sensors, image signal processors, and actuator drivers for autofocus and image stabilization for various end users in the automotive, industrial, consumer, wireless, medical, and aerospace/defense markets.

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