Comparing Kopin (NASDAQ:KOPN) & Wolfspeed (NYSE:WOLF)

Kopin (NASDAQ:KOPN) and Wolfspeed (NYSE:WOLF) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kopin	$44.27 million	5.38	-$19.75 million	($0.41)	-3.66
Wolfspeed	$807.20 million	1.08	-$864.20 million	($7.68)	-0.89

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

Risk and Volatility

Kopin has a beta of 2.73, suggesting that its stock price is 173% more volatile than the S&P 500. Comparatively, Wolfspeed has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kopin	-109.38%	-165.86%	-42.90%
Wolfspeed	-125.96%	-70.84%	-6.58%

Institutional and Insider Ownership

31.0% of Kopin shares are held by institutional investors. 6.7% of Kopin shares are held by insiders. Comparatively, 0.8% of Wolfspeed shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kopin	0	0	4	0	3.00
Wolfspeed	2	10	4	0	2.13

Kopin presently has a consensus target price of $2.63, suggesting a potential upside of 75.00%. Wolfspeed has a consensus target price of $14.86, suggesting a potential upside of 118.33%. Given Wolfspeed’s higher probable upside, analysts plainly believe Wolfspeed is more favorable than Kopin.

Summary

Kopin beats Wolfspeed on 8 of the 13 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 Wolfspeed

Wolfspeed, Inc. operates as a powerhouse semiconductor company focuses on silicon carbide and gallium nitride (GaN) technologies in Europe, Hong Kong, China, rest of Asia-Pacific, the United States, and internationally. It offers silicon carbide and GaN materials, including silicon carbide bare wafers, epitaxial wafers, and GaN epitaxial layers on silicon carbide wafers to manufacture products for RF, power, and other applications. The company also provides power devices, such as silicon carbide Schottky diodes, metal oxide semiconductor field effect transistors (MOSFETs), and power modules for customers and distributors to use in applications, including electric vehicles comprising charging infrastructure, server power supplies, solar inverters, uninterruptible power supplies, industrial power supplies, and other applications. In addition, it offers RF devices comprising GaN-based die, high-electron mobility transistors, monolithic microwave integrated circuits, and laterally diffused MOSFET power transistors for telecommunications infrastructure, military, and other commercial applications. The company was formerly known as Cree, Inc. and changed its name to Wolfspeed, Inc. in October 2021. Wolfspeed, Inc. was incorporated in 1987 and is headquartered in Durham, North Carolina.