Critical Contrast: NeoMagic (OTCMKTS:NMGC) & Coda Octopus Group (NASDAQ:CODA)

Coda Octopus Group (NASDAQ:CODA) and NeoMagic (OTCMKTS:NMGC) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.

Risk and Volatility

Coda Octopus Group has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, NeoMagic has a beta of -0.34, suggesting that its share price is 134% less volatile than the S&P 500.

Insider and Institutional Ownership

20.1% of Coda Octopus Group shares are owned by institutional investors. 21.8% of Coda Octopus Group shares are owned by company insiders. Comparatively, 12.7% of NeoMagic 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 Recommendations

This is a breakdown of recent ratings and recommmendations for Coda Octopus Group and NeoMagic, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coda Octopus Group	0	1	2	0	2.67
NeoMagic	0	0	0	0	0.00

Coda Octopus Group currently has a consensus target price of $14.00, indicating a potential upside of 47.68%. Given Coda Octopus Group’s stronger consensus rating and higher possible upside, analysts clearly believe Coda Octopus Group is more favorable than NeoMagic.

Profitability

This table compares Coda Octopus Group and NeoMagic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coda Octopus Group	17.66%	8.33%	7.61%
NeoMagic	N/A	N/A	N/A

Valuation and Earnings

This table compares Coda Octopus Group and NeoMagic”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coda Octopus Group	$27.95 million	3.83	$4.13 million	$0.43	22.05
NeoMagic	N/A	N/A	N/A	N/A	N/A

Coda Octopus Group has higher revenue and earnings than NeoMagic.

Summary

Coda Octopus Group beats NeoMagic on 10 of the 10 factors compared between the two stocks.

About Coda Octopus Group

Coda Octopus Group, Inc., together with its subsidiaries, develops, sells, and rentals underwater technologies and equipment for real time 3D imaging, mapping, defense, and survey applications in the Americas, Europe, Australia, Asia, the Middle East, and Africa. The company operates through two segments, Marine Engineering Business and Marine Technology Business. The company's solutions include geophysical systems; GNSS-aided navigation systems (attitude and positioning systems); real time volumetric imaging sonar products; and diver augmented vision display systems. It also offers GeoSurvey, a software and hardware package for acquisition and processing of sidescan sonar and sub-bottom profiler data in oil and gas companies; DA4G, a geophysical hardware; and Survey Engine, a software product that provides post-processing solutions for sidescan sonar and sub-bottom profiler data. In addition, the company offers 3D/4D/5D/6D imaging sonar technology under the Echoscope and Echoscope PIPE name; diving technology under the CodaOctopus DAVD; and operates as a sub-contractor for defense contractors, as well as supplies sub-assemblies for broader mission critical defense systems. It markets and sells its technology solutions for the subsea and underwater markets. Coda Octopus Group, Inc. was founded in 1994 and is headquartered in Orlando, Florida.

About NeoMagic

NeoMagic Corporation designs and delivers semiconductors and software solutions for video, television, imaging, graphic, and audio devices. It offers microcontrollers; horizon digital picture frame and digital mobile TV solutions; and SOC processors, such as application processors and Neomobile TV solutions. The company, through its MercadoMagico.com division, operates an e-Commerce platform that allows user to buy and sell products from one another or buy premium electronic products. It sells its applications processors under the MiMagic brand name. The company was founded in 1993 and is based in Milpitas, California.