Contrasting Celestica (NYSE:CLS) and Kopin (NASDAQ:KOPN)

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

Institutional & Insider Ownership

31.0% of Kopin shares are held by institutional investors. Comparatively, 67.4% of Celestica shares are held by institutional investors. 2.6% of Kopin shares are held by insiders. Comparatively, 1.1% of Celestica shares are held 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.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kopin	$39.32 million	19.85	$2.61 million	$0.04	105.00
Celestica	$15.59 billion	2.63	$832.50 million	$9.62	37.04

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

Analyst Recommendations

This is a summary of current ratings for Kopin and Celestica, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kopin	1	1	6	0	2.62
Celestica	0	1	23	0	2.96

Kopin presently has a consensus target price of $7.17, suggesting a potential upside of 70.63%. Celestica has a consensus target price of $450.50, suggesting a potential upside of 26.43%. Given Kopin’s higher possible upside, research analysts plainly believe Kopin is more favorable than Celestica.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kopin	18.26%	14.79%	8.42%
Celestica	7.16%	39.96%	11.06%

Risk and Volatility

Kopin has a beta of 3.59, meaning that its stock price is 259% more volatile than the S&P 500. Comparatively, Celestica has a beta of 2.01, meaning that its stock price is 101% more volatile than the S&P 500.

Summary

Celestica beats Kopin on 8 of the 14 factors compared between the two stocks.

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.

About Celestica

Celestica Inc. provides supply chain solutions in North America, Europe, and Asia. It operates through two segments: Advanced Technology Solutions, and Connectivity & Cloud Solutions. The company offers a range of product manufacturing and related supply chain services, including design and development, new product introduction, engineering services, component sourcing, electronics manufacturing and assembly, testing, complex mechanical assembly, systems integration, precision machining, order fulfillment, logistics, asset management, product licensing, and after-market repair and return services. It also provides hardware platform solutions, which includes development of infrastructure platforms, and hardware and software design solutions and services which is used as-is or customized for specific applications; and management of program including design and supply chain, manufacturing, and after-market support, including IT asset disposition and asset management services. The company offers its products and services to original equipment manufacturers, cloud-based, and other service providers, including hyperscalers, and other companies in aerospace and defense, industrial, HealthTech, capital equipment, and communication and enterprise markets. Celestica Inc. was incorporated in 1994 and is headquartered in Toronto, Canada.