Head-To-Head Analysis: Neonode (NASDAQ:NEON) vs. Trend Micro (OTCMKTS:TMICY)

Neonode (NASDAQ:NEON) and Trend Micro (OTCMKTS:TMICY) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Volatility and Risk

Neonode has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, Trend Micro has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.

Valuation and Earnings

This table compares Neonode and Trend Micro”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neonode	$3.11 million	10.84	-$6.47 million	($0.32)	-6.28
Trend Micro	$1.80 billion	3.46	$226.77 million	$1.78	24.90

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

Profitability

This table compares Neonode and Trend Micro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Neonode	408.88%	-38.60%	-32.68%
Trend Micro	12.78%	29.95%	9.11%

Analyst Ratings

This is a breakdown of current ratings and price targets for Neonode and Trend Micro, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neonode	1	1	0	0	1.50
Trend Micro	0	0	0	0	0.00

Neonode currently has a consensus target price of $6.00, suggesting a potential upside of 198.51%. Given Neonode’s stronger consensus rating and higher possible upside, equities analysts clearly believe Neonode is more favorable than Trend Micro.

Institutional & Insider Ownership

11.6% of Neonode shares are owned by institutional investors. Comparatively, 0.1% of Trend Micro shares are owned by institutional investors. 23.9% of Neonode shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Trend Micro beats Neonode on 7 of the 13 factors compared between the two stocks.

About Neonode

Neonode Inc., together with its subsidiaries, develops optical sensing solutions for contactless touch, touch, and gesture sensing in the United States, Japan, South Korea, Germany, Switzerland, France, Sweden, China, and internationally. It also offers software solutions for machine perception to detect and track persons and objects in video streams from cameras and other types of imagers. In addition, the company sells touch sensor modules to OEMs, original design manufacturers, and systems integrators. Further, it licenses its zForce technology to original equipment manufacturers and automotive Tier 1 suppliers, as well as provides non-recurring engineering services related to application development. It serves office equipment, automotive, industrial automation, medical, military, and avionics markets. Neonode Inc. was incorporated in 1997 and is headquartered in Stockholm, Sweden.

About Trend Micro

Trend Micro Incorporated develops and sells security-related software for computers and related services in Japan and internationally. The company offers platforms, such as vision one platform, attack surface management, extended detection and response (XDR), cloud security, endpoint security, network security, email security, OT/ICS security, and threat intelligence. It also provides services packages, managed XDR, incident response, and support services. Additionally, the company serves 5G networks, healthcare, manufacturing, oil and gas, electric utility, and automotive industries. The company was incorporated in 1965 and is headquartered in Tokyo, Japan.