Wolfspeed (NYSE:WOLF) and Kopin (NASDAQ:KOPN) Financial Review

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

Institutional & Insider Ownership

31.0% of Kopin shares are held by institutional investors. 0.8% of Wolfspeed shares are held by insiders. Comparatively, 6.7% of Kopin shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

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

Analyst Recommendations

This is a breakdown of recent recommendations for Wolfspeed and Kopin, as reported by MarketBeat.com.

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

Wolfspeed currently has a consensus target price of $14.86, indicating a potential upside of 141.78%. Kopin has a consensus target price of $2.63, indicating a potential upside of 58.13%. Given Wolfspeed’s higher possible upside, equities analysts plainly believe Wolfspeed is more favorable than Kopin.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wolfspeed	$807.20 million	0.97	-$864.20 million	($7.68)	-0.80
Kopin	$40.39 million	6.53	-$19.75 million	($0.41)	-4.05

Kopin has lower revenue, but higher earnings 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.

Volatility & Risk

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

Summary

Kopin beats Wolfspeed on 8 of the 13 factors compared between the two stocks.

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.

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.