Analyzing Erayak Power Solution Group (NASDAQ:RAYA) and Kopin (NASDAQ:KOPN)

Kopin (NASDAQ:KOPN) and Erayak Power Solution Group (NASDAQ:RAYA) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Volatility & Risk

Kopin has a beta of 2.98, meaning that its share price is 198% more volatile than the S&P 500. Comparatively, Erayak Power Solution Group has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kopin	-29.47%	-66.91%	-20.69%
Erayak Power Solution Group	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and price targets for Kopin and Erayak Power Solution Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kopin	1	0	4	0	2.60
Erayak Power Solution Group	1	0	0	0	1.00

Kopin currently has a consensus price target of $4.69, indicating a potential upside of 101.18%. Given Kopin’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Kopin is more favorable than Erayak Power Solution Group.

Insider & Institutional Ownership

31.0% of Kopin shares are owned by institutional investors. Comparatively, 0.3% of Erayak Power Solution Group shares are owned by institutional investors. 2.8% 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.

Earnings & Valuation

This table compares Kopin and Erayak Power Solution Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kopin	$45.60 million	9.33	-$43.88 million	($0.04)	-58.25
Erayak Power Solution Group	$30.30 million	0.10	-$1.12 million	N/A	N/A

Erayak Power Solution Group has lower revenue, but higher earnings than Kopin.

Summary

Kopin beats Erayak Power Solution Group on 8 of the 12 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 Erayak Power Solution Group

Erayak Power Solution Group Inc., through its subsidiaries, engages in the research and development, manufacture, and wholesale and retail of power solution products. Its product portfolio includes sine wave and off-grid inverters, inverter and gasoline generators, battery and smart chargers, and custom-designed products. The company's products are used in agricultural and industrial vehicles, recreational vehicles, electrical appliances, and outdoor living products. It operates in China, France, Poland, Mexico, and the United Kingdom. The company was incorporated in 2019 and is based in Wenzhou, the People's Republic of China. Erayak Power Solution Group Inc. operates as a subsidiary of Erayak International Limited.