Critical Comparison: Eastman Kodak (KODK) & Canon (CAJ)

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Eastman Kodak (NYSE:KODK) and Canon (NYSE:CAJ) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.

Insider and Institutional Ownership

55.2% of Eastman Kodak shares are owned by institutional investors. Comparatively, 1.6% of Canon shares are owned by institutional investors. 9.0% of Eastman Kodak shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Eastman Kodak and Canon, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eastman Kodak 0 0 0 0 N/A
Canon 2 0 0 0 1.00

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eastman Kodak $1.53 billion 0.08 $94.00 million N/A N/A
Canon $36.15 billion 0.86 $2.15 billion $2.15 13.25

Canon has higher revenue and earnings than Eastman Kodak.

Profitability

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

Net Margins Return on Equity Return on Assets
Eastman Kodak 4.07% N/A -2.44%
Canon 5.88% 8.36% 5.05%

Risk & Volatility

Eastman Kodak has a beta of 2.49, suggesting that its stock price is 149% more volatile than the S&P 500. Comparatively, Canon has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.

Dividends

Canon pays an annual dividend of $1.15 per share and has a dividend yield of 4.0%. Eastman Kodak does not pay a dividend. Canon pays out 53.5% of its earnings in the form of a dividend.

Summary

Canon beats Eastman Kodak on 7 of the 11 factors compared between the two stocks.

About Eastman Kodak

Eastman Kodak Company provides hardware, software, consumables, and services to customers in various markets worldwide. The company operates through seven segments: Print Systems; Enterprise Inkjet Systems; Flexographic Packaging; Software and Solutions; Consumer and Film; Advanced Materials and 3D Printing Technology; and Eastman Business Park. It offers digital offset plate and computer-to-plate imaging solutions, and electro photographic printing solutions to a range of commercial industries, including commercial print, direct mail, book publishing, newspapers and magazines, and packaging. The company also provides production press systems, consumables, and inkjet components and services; flexographic imaging equipment, printing plates, consumables, and related services; enterprise services and solutions, such as a suite of software solutions for print production workflow, as well as print and managed media services that assist customers with solutions for their printing requirements and document management services; consumer products, including cameras and inkjet printers; and motion picture and industrial film, and chemicals, as well as licenses Kodak brand to third parties for a range of products, such as batteries, digital and instant print cameras, camera accessories, printers, and LED lighting products. In addition, it offers intellectual property licensing solutions; and leases technology center and industrial complex. The company sells its products and services through third party resellers and distributors, as well as directly and indirectly to enterprise accounts and customers. Eastman Kodak Company was founded in 1880 and is headquartered in Rochester, New York.

About Canon

Canon Inc. manufactures and sells office multifunction devices (MFDs), plain paper copying machines, laser and inkjet printers, cameras, diagnostic equipment, and lithography equipment. The company operates in four segments: Office Business Unit, Imaging System Business Unit, Medical System Business Unit, and Industry and Others Business Unit. The Office Business Unit segment offers office MFDs, printers, copying machines for personal and office use, production print products for print professionals, laser multifunction and laser printers, digital production printing systems, continuous feed and wide-format printers, and document solutions, as well as software, services, and solutions. The Imaging System Business Unit segment provides interchangeable-lens digital cameras, digital compact cameras and camcorders, digital cinema cameras, interchangeable lenses, compact photo printers, inkjet printers, commercial photo printers, image scanners, multimedia projectors, broadcast equipment, and calculators. The Medical System Business Unit segment offers digital radiography systems, diagnostic X-ray systems, computed tomography, magnetic resonance imaging, diagnostic ultrasound systems, clinical chemistry analyzers, and ophthalmic equipment. The Industry and Others Business Unit segment provides semiconductor lithography equipment, flat panel display lithography equipment, digital radiography systems, vacuum thin-film deposition equipment, organic light-emitting diode panel manufacturing equipment, die bonders, micromotors, network cameras, handy terminals, and document scanners. The company also provides maintenance services; and supplies replacement drums, parts, toners, and papers. It sells its products under the Canon brand through subsidiaries or independent distributors to dealers and retail outlets, as well as directly to end-users in Japan, the Americas, Europe, rest of Asia, and Oceania. Canon Inc. was founded in 1933 and is headquartered in Tokyo, Japan.

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