Sandisk (NASDAQ:SNDK) & Eastman Kodak (NYSE:KODK) Critical Analysis

Eastman Kodak (NYSE:KODK – Get Free Report) and Sandisk (NASDAQ:SNDK – Get Free Report) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Profitability

This table compares Eastman Kodak and Sandisk’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eastman Kodak -8.28% -14.47% -5.55%
Sandisk 56.47% 87.84% 66.03%

Insider & Institutional Ownership

33.6% of Eastman Kodak shares are owned by institutional investors. 21.3% of Eastman Kodak shares are owned by insiders. Comparatively, 0.3% of Sandisk shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Eastman Kodak and Sandisk, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eastman Kodak 1 1 0 0 1.50
Sandisk 0 4 21 3 2.96

Sandisk has a consensus price target of $2,120.65, indicating a potential upside of 55.37%. Given Sandisk’s stronger consensus rating and higher probable upside, analysts clearly believe Sandisk is more favorable than Eastman Kodak.

Earnings and Valuation

This table compares Eastman Kodak and Sandisk”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eastman Kodak $1.07 billion 0.82 -$128.00 million ($1.39) -6.45
Sandisk $20.25 billion 9.74 $11.43 billion $72.90 18.72

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

Risk & Volatility

Eastman Kodak has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500. Comparatively, Sandisk has a beta of 5.23, indicating that its share price is 423% more volatile than the S&P 500.

Summary

Sandisk beats Eastman Kodak on 13 of the 15 factors compared between the two stocks.

About Eastman Kodak

(Get Free Report)

Eastman Kodak Company engages in the provision of hardware, software, consumables, and services to customers in the commercial print, packaging, publishing, manufacturing, and entertainment markets worldwide. The company operates through three segments: Print, Advanced Materials and Chemicals, and Brand. The Print segment provides digital offset plate offerings and computer-to-plate imaging solutions; press systems and components under the PROSPER brand name, as well as print inks and primers under the KODAK OPTIMAX, KODACHROME, and KODAK EKTACOLOR brand names; and PRINERGY, a workflow production software, which is used by customers to manage digital and conventional print content from file creation to output. This segment offers its products to commercial industries, including commercial print, direct mail, book publishing, newspapers and magazines, décor, and packaging/labels. The Advanced Materials and Chemicals segment engages in industrial film and chemicals, motion picture, advanced materials and functional printing, and IP licensing and analytical activities. This segment also comprises the Kodak Research Laboratories, which conducts research, develops new product or new business opportunities, and files patent applications for its inventions and innovations, as well as manages licensing of its intellectual property to third parties. The Brand segment engages in the licensing of Kodak brand to third parties. The company is also involved in the operation of Eastman Business Park, a technology center and industrial complex. It sells its products and services through direct sales, third party resellers, dealers, channel partners, and distributors. The company was founded in 1880 and is headquartered in Rochester, New York.

About Sandisk

(Get Free Report)

SanDisk Corporation offers flash storage solutions. The Company designs, develops and manufactures data storage solutions in a range of form factors using flash memory, controller, firmware and software technologies. The Company operates through flash memory storage products segment. Its solutions include a range of solid state drives (SSD), embedded products, removable cards, universal serial bus (USB), drives, wireless media drives, digital media players, and wafers and components. It offers SSDs for client computing applications, which encompass desktop computers, notebook computers, tablets and other computing devices. Its embedded products are used for embedded storage for mobile phones, tablets, notebooks and other portable and wearable devices, as well as in automotive and connected home applications. Its removable products include cards, USB flash drives, Wireless Drives and Digital Media Players at a range of storage capacities. It sells memory wafers and memory components.

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