Head to Head Analysis: Taiwan Semiconductor Mfg. (TSM) & Kopin (KOPN)

Taiwan Semiconductor Mfg. (NYSE: TSM) and Kopin (NASDAQ:KOPN) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

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19.4% of Taiwan Semiconductor Mfg. shares are owned by institutional investors. Comparatively, 45.3% of Kopin shares are owned by institutional investors. 1.1% of Taiwan Semiconductor Mfg. shares are owned by insiders. Comparatively, 10.0% of Kopin shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Taiwan Semiconductor Mfg. and Kopin, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Taiwan Semiconductor Mfg. 0 4 4 0 2.50
Kopin 0 1 0 0 2.00

Taiwan Semiconductor Mfg. presently has a consensus price target of $42.00, indicating a potential upside of 9.32%. Given Taiwan Semiconductor Mfg.’s stronger consensus rating and higher possible upside, analysts clearly believe Taiwan Semiconductor Mfg. is more favorable than Kopin.

Dividends

Taiwan Semiconductor Mfg. pays an annual dividend of $0.92 per share and has a dividend yield of 2.4%. Kopin does not pay a dividend. Taiwan Semiconductor Mfg. pays out 42.4% of its earnings in the form of a dividend. Taiwan Semiconductor Mfg. has increased its dividend for 3 consecutive years.

Profitability

This table compares Taiwan Semiconductor Mfg. and Kopin’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Taiwan Semiconductor Mfg. 34.83% 23.36% 17.45%
Kopin -80.11% -30.68% -26.06%

Risk & Volatility

Taiwan Semiconductor Mfg. has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Kopin has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500.

Earnings and Valuation

This table compares Taiwan Semiconductor Mfg. and Kopin’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Taiwan Semiconductor Mfg. $32.11 billion 6.21 $11.64 billion $2.17 17.71
Kopin $27.84 million 9.15 -$25.24 million N/A N/A

Taiwan Semiconductor Mfg. has higher revenue and earnings than Kopin.

Summary

Taiwan Semiconductor Mfg. beats Kopin on 10 of the 15 factors compared between the two stocks.

About Taiwan Semiconductor Mfg.

Taiwan Semiconductor Manufacturing Company Limited., together with its subsidiaries, engages in the computer-aided design, manufacture, packaging, testing, sale, and marketing of integrated circuits, color filters, and other semiconductor devices primarily in Taiwan. It manufactures masks and electronic parts; sells solar related products; wholesales and retails electronic materials; and researches, develops, and tests RFID systems. The company is also involved in customer service and technical supporting, marketing and engineering supporting, and investment activities. It also operates in the United States, Asia, Europe, the Middle East, Africa, and other countries. Taiwan Semiconductor Manufacturing Company Limited was founded in 1987 and is headquartered in HsinChu, Taiwan.

About Kopin

Kopin Corporation invents, develops, manufactures, and sells technologies, components, and systems in the United States, the Asia-Pacific, and Europe. The company's Kopin Wearable technology includes component technologies, which can be integrated to create headset systems. It provides components, including miniature liquid crystal displays, liquid crystal on silicon displays/ spatial light modulators, organic light emitting diode displays, application specific integrated circuits, backlights, optical lenses, and audio integrated circuits. The company also offers headset systems, such as Solos smart glasses for the health and fitness market; Golden-i headsets for the enterprise market; and visor headsets for training and simulation market. Its display products are used in military, consumer, electronic, and industrial products, such as thermal weapon sights, safety equipment, virtual and augmented reality gaming, training and simulation products, and metrology tools. The company sells its components directly, as well as through distributors to original equipment manufacturers; and military display products, and training and simulation products directly to prime contractors of the United States government or to foreign companies. Kopin Corporation was founded in 1984 and is headquartered in Westborough, Massachusetts.

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