Neonode (NASDAQ:NEON) & PTC (NASDAQ:PTC) Critical Survey

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

Earnings & Valuation

This table compares Neonode and PTC”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neonode	$3.11 million	148.97	-$6.47 million	($0.71)	-38.89
PTC	$2.30 billion	9.12	$376.33 million	$3.64	48.03

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

Institutional and Insider Ownership

11.6% of Neonode shares are held by institutional investors. Comparatively, 95.1% of PTC shares are held by institutional investors. 23.9% of Neonode shares are held by company insiders. Comparatively, 0.3% of PTC shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Neonode and PTC, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neonode	0	0	1	0	3.00
PTC	1	5	7	0	2.46

Neonode presently has a consensus target price of $16.50, indicating a potential downside of 40.24%. PTC has a consensus target price of $189.23, indicating a potential upside of 8.24%. Given PTC’s higher probable upside, analysts plainly believe PTC is more favorable than Neonode.

Volatility & Risk

Neonode has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, PTC has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Neonode	-217.85%	-38.24%	-33.96%
PTC	18.77%	15.35%	7.97%

Summary

PTC beats Neonode on 11 of the 14 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 PTC

PTC Inc. operates as software company in the Americas, Europe, and the Asia Pacific. The company provides Windchill, a suite that manages all aspects of the product development lifecycle(PLM) that provides real-time information sharing, dynamic data visualization, collaborate across geographically distributed teams, and enabling manufacturers to elevate product development, manufacturing, and field service processes; ThingWorx, a platform for Industrial Internet of Things; ServiceMax, a field service management solutions enable companies to asset uptime with optimized in-person and remote service and technician productivity with mobile tools. and deliver metrics; and Arena, a SaaS PLM solution enables product teams to collaborate virtually to share product and quality information with internal teams and supply chain partners and deliver products to customers. It offers Codebeamer, an application lifecycle management for products and software development; Servigistics, a service parts management solution; and FlexPLM, a solution provides retailers with a single platform for merchandising and line planning, materials management, sampling, and others. In addition, it offers Kepware, a portfolio of industrial connectivity solutions helps companies connect diverse automation devices and software applications; Creo, a 3D CAD technology enables the digital design, testing, and modification of product models; and Onshape, a cloud product development platform that delivers computer-aided design with data management tools. Further, it offers Vuforia, an augmented reality (AR) technology enables the visualization of digital information in a physical context and the creation of AR enabling companies to drive results in manufacturing, service, engineering, and operations; and Arbortext, a dynamic publishing solution streamlines how organizations create, manage, and publish technical documentation. PTC Inc. was incorporated in 1985 and is headquartered in Boston, Massachusetts.