Critical Survey: Eastman Kodak (NYSE:KODK) and Spruce Power (NYSE:SPRU)

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

Valuation & Earnings

This table compares Eastman Kodak and Spruce Power”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eastman Kodak	$1.07 billion	0.83	-$128.00 million	($1.88)	-4.83
Spruce Power	$111.81 million	0.42	-$26.03 million	($0.76)	-3.43

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Eastman Kodak	-12.60%	-21.13%	-7.37%
Spruce Power	-12.22%	-10.95%	-1.60%

Volatility & Risk

Eastman Kodak has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500. Comparatively, Spruce Power has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Eastman Kodak and Spruce Power, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eastman Kodak	1	0	0	0	1.00
Spruce Power	1	0	0	0	1.00

Insider and Institutional Ownership

33.7% of Eastman Kodak shares are owned by institutional investors. Comparatively, 20.8% of Spruce Power shares are owned by institutional investors. 21.3% of Eastman Kodak shares are owned by insiders. Comparatively, 12.7% of Spruce Power shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Spruce Power beats Eastman Kodak on 6 of the 11 factors compared between the two stocks.

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.

About Spruce Power

Spruce Power Holding Corporation owns and operates distributed solar energy assets in the United States. The company provides subscription-based services for homeowners and businesses to own and maintain rooftop solar and battery storage. It offers its subscription-based services to approximately 75,000 customers. The company is headquartered in Denver, Colorado.