Analyzing Mistras Group (NYSE:MG) and Kopin (NASDAQ:KOPN)

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Kopin and Mistras Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kopin	1	0	4	0	2.60
Mistras Group	0	1	0	1	3.00

Kopin presently has a consensus target price of $4.69, suggesting a potential upside of 63.90%. Mistras Group has a consensus target price of $16.00, suggesting a potential upside of 13.07%. Given Kopin’s higher probable upside, equities analysts plainly believe Kopin is more favorable than Mistras Group.

Volatility and Risk

Kopin has a beta of 2.7, suggesting that its stock price is 170% more volatile than the S&P 500. Comparatively, Mistras Group has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kopin	-13.81%	-30.97%	-9.76%
Mistras Group	2.55%	13.10%	4.97%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kopin	$50.33 million	10.37	-$43.88 million	($0.04)	-71.50
Mistras Group	$729.64 million	0.61	$18.96 million	$0.58	24.40

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

Insider & Institutional Ownership

31.0% of Kopin shares are owned by institutional investors. Comparatively, 74.9% of Mistras Group shares are owned by institutional investors. 2.8% of Kopin shares are owned by company insiders. Comparatively, 4.8% of Mistras Group shares are owned by company 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.

Summary

Mistras Group beats Kopin on 11 of the 15 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 Mistras Group

Mistras Group, Inc. provides technology-enabled asset protection solutions in the United States, other Americas, Europe, and the Asia-Pacific. The company offers non-destructive testing services; inline inspection for pipelines; and plant condition management software. It also provides maintenance and light mechanical services, such as corrosion removal, mitigation and prevention, insulation installation and removal, electrical, heat tracing, industrial cleaning, pipefitting, and welding; engineering consulting services primarily for process equipment, technologies, and facilities; and utilizes scaffolding and rope access to access at-height and confined assets. In addition, the company offers certified divers for subsea inspection and maintenance; unmanned aerial, land-based, and subsea systems for inspection applications; online condition-monitoring solutions; quality assurance and quality control solutions for new and existing metal and alloy components, materials, and composites. Further, it builds monitoring systems, as well as provides inspection, maintenance, monitoring and data services; and Web-based solutions. Additionally, the company designs, manufactures, and sells acoustic emission sensors, instruments, and turnkey systems for monitoring and testing materials, pressure components, processes, and structures; and ultrasonic testing equipment. It serves oil and gas, aerospace and defense, fossil and nuclear power, power generation and transmission, civil infrastructure, manufacturing, industrial, public infrastructure, petrochemical, transportation, and other process industries, as well as infrastructure, research, and engineering industries. Mistras Group, Inc. was founded in 1978 and is headquartered in Princeton Junction, New Jersey.