Financial Analysis: Neonode (NEON) versus The Competition

Neonode (NASDAQ:NEON) is one of 376 public companies in the “Electronic Equipment, Instruments & Components” industry, but how does it weigh in compared to its rivals? We will compare Neonode to similar businesses based on the strength of its institutional ownership, earnings, profitability, risk, dividends, valuation and analyst recommendations.

Insider and Institutional Ownership

11.6% of Neonode shares are held by institutional investors. Comparatively, 43.5% of shares of all “Electronic Equipment, Instruments & Components” companies are held by institutional investors. 21.9% of Neonode shares are held by insiders. Comparatively, 16.4% of shares of all “Electronic Equipment, Instruments & Components” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Neonode and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Neonode	397.84%	-32.35%	-28.42%
Neonode Competitors	-139.38%	-23.97%	-6.40%

Analyst Recommendations

This is a summary of current recommendations for Neonode and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neonode	1	0	0	0	1.00
Neonode Competitors	2052	7633	10469	668	2.47

As a group, “Electronic Equipment, Instruments & Components” companies have a potential upside of 35.51%. Given Neonode’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Neonode has less favorable growth aspects than its rivals.

Risk & Volatility

Neonode has a beta of 1.82, indicating that its stock price is 82% more volatile than the S&P 500. Comparatively, Neonode’s rivals have a beta of -0.24, indicating that their average stock price is 124% less volatile than the S&P 500.

Earnings & Valuation

This table compares Neonode and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Neonode	$2.06 million	$8.49 million	-1.79
Neonode Competitors	$4.06 billion	$173.71 million	4.25

Neonode’s rivals have higher revenue and earnings than Neonode. Neonode is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Neonode rivals beat Neonode on 10 of the 13 factors compared.

About Neonode

Neonode Inc. (NASDAQ:NEON) is a Swedish technology company that develops optical sensing solutions for touch, gesture control and object detection. Its technology is designed to enable interactive interfaces without relying exclusively on conventional capacitive touchscreens or mechanical controls. The company’s products include zForce optical sensing modules and related software, which use infrared light to detect touch, hand movements and other interactions. Neonode provides these solutions for applications in automotive systems, consumer electronics, industrial equipment, office devices and other embedded products.