Reviewing Neonode (NEON) and The Competition

Neonode (NASDAQ:NEON) is one of 377 publicly-traded companies in the “Electronic Equipment, Instruments & Components” industry, but how does it weigh in compared to its peers? We will compare Neonode to related businesses based on the strength of its analyst recommendations, dividends, earnings, institutional ownership, risk, valuation and profitability.

Valuation & Earnings

This table compares Neonode and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Neonode	$2.06 million	$8.49 million	-2.10
Neonode Competitors	$4.16 billion	$172.92 million	4.55

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

Volatility and Risk

Neonode has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500. Comparatively, Neonode’s peers have a beta of -0.30, suggesting that their average stock price is 130% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Neonode and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neonode	1	0	0	0	1.00
Neonode Competitors	2055	7629	10456	667	2.47

As a group, “Electronic Equipment, Instruments & Components” companies have a potential upside of 34.92%. Given Neonode’s peers stronger consensus rating and higher probable upside, analysts clearly believe Neonode has less favorable growth aspects than its peers.

Institutional & Insider Ownership

11.6% of Neonode shares are owned by institutional investors. Comparatively, 43.5% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by institutional investors. 21.9% of Neonode shares are owned by company insiders. Comparatively, 16.1% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Neonode and its peers’ 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	-141.16%	-27.05%	-7.22%

Summary

Neonode peers 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.