Financial Survey: Superconductor Technologies (SCON) & Vuzix (VUZI)

Superconductor Technologies (NASDAQ: SCON) and Vuzix (NASDAQ:VUZI) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.

Profitability

This table compares Superconductor Technologies and Vuzix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Superconductor Technologies -1,317.27% -139.63% -121.99%
Vuzix -354.57% -89.53% -76.95%

Risk and Volatility

Superconductor Technologies has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Vuzix has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500.

Earnings and Valuation

This table compares Superconductor Technologies and Vuzix’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Superconductor Technologies $450,000.00 27.38 -$9.52 million ($0.91) -1.10
Vuzix $5.54 million 36.26 -$19.63 million ($1.02) -7.21

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

Institutional & Insider Ownership

8.3% of Superconductor Technologies shares are owned by institutional investors. Comparatively, 13.4% of Vuzix shares are owned by institutional investors. 1.6% of Superconductor Technologies shares are owned by company insiders. Comparatively, 14.7% of Vuzix shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Superconductor Technologies and Vuzix, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Superconductor Technologies 0 0 1 0 3.00
Vuzix 0 0 3 0 3.00

Superconductor Technologies currently has a consensus target price of $3.00, suggesting a potential upside of 200.00%. Vuzix has a consensus target price of $10.50, suggesting a potential upside of 42.86%. Given Superconductor Technologies’ higher probable upside, equities research analysts plainly believe Superconductor Technologies is more favorable than Vuzix.

Summary

Vuzix beats Superconductor Technologies on 9 of the 13 factors compared between the two stocks.

About Superconductor Technologies

Superconductor Technologies Inc., together with its subsidiaries, develops, produces, and commercializes high temperature superconductor materials and related technologies in the United States. It is involved in developing Conductus superconducting wire for power applications. The company was founded in 1987 and is headquartered in Austin, Texas.

About Vuzix

Vuzix Corporation designs, manufactures, markets, and sells wearable display devices in the United States and internationally. Its wearable display products include augmented reality (AR) smart glasses for various enterprise and commercial users and applications; and video viewing glasses for on-the-go users as mobile displays for entertainment and gaming. The company's products also include binocular wearable displays that contain two micro displays mounted in a frame attached to eyeglass-style temples or stereo headphones; monocular smart glasses products for the enterprise, industrial, and commercial markets, as well as video headphones; AR wearable products, which provide users with a live, direct, or indirect view of a physical real-world environment. Its products are worn as eyeglasses that enable the user to view video and digital content, such as movies, computer data, the Internet, or video games. In addition, it offers an app store on its Websites where users can download and purchase applications, including third party applications; VUZIX Basics, an application that provides the fundamental benefits of smart glasses to users; and VUZIX Basics Video provides remote telepresence capabilities. Further, the company provides waveguide optics and design reference kits, and custom and engineering solutions. Vuzix Corporation offers its products directly to consumers, as well as through specialty retailers, online retailers, distributors, value added resellers, and Webstores. The company was formerly known as Icuiti Corporation and changed its name to Vuzix Corporation in 2007. Vuzix Corporation was founded in 1997 and is headquartered in West Henrietta, New York.

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