Head-To-Head Survey: Rand Worldwide (OTCMKTS:RWWI) versus Neonode (NASDAQ:NEON)

Rand Worldwide (OTCMKTS:RWWI) and Neonode (NASDAQ:NEON) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Volatility & Risk

Rand Worldwide has a beta of 0.02, indicating that its stock price is 98% less volatile than the S&P 500. Comparatively, Neonode has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Rand Worldwide and Neonode, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rand Worldwide	0	0	0	0	0.00
Neonode	0	1	0	0	2.00

Neonode has a consensus target price of $6.00, suggesting a potential upside of 40.19%. Given Neonode’s stronger consensus rating and higher possible upside, analysts clearly believe Neonode is more favorable than Rand Worldwide.

Valuation and Earnings

This table compares Rand Worldwide and Neonode”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rand Worldwide	$408.11 million	1.15	$52.43 million	$1.33	10.53
Neonode	$2.61 million	27.57	-$6.47 million	($0.71)	-6.03

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

Insider and Institutional Ownership

0.0% of Rand Worldwide shares are held by institutional investors. Comparatively, 11.6% of Neonode shares are held by institutional investors. 59.2% of Rand Worldwide shares are held by insiders. Comparatively, 23.9% of Neonode shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rand Worldwide	18.60%	106.88%	18.94%
Neonode	-241.38%	-40.64%	-35.78%

Summary

Rand Worldwide beats Neonode on 8 of the 13 factors compared between the two stocks.

About Rand Worldwide

Rand Worldwide, Inc. provides design automation and data management solutions primarily in the United States and Canada. It operates in five divisions: IMAGINiT Technologies, Rand Simulation, Facilities Management, ASCENT, and Rand 3D. The IMAGINiT Technologies division resells Autodesk solutions and system integration, and consulting services to customers in the manufacturing, infrastructure, building, and media and entertainment industries; resells Twinmotion visualization software, which provides design professionals to transform architectural models and designs into photorealistic images and immersive videos; offers a range of 3D laser scanning equipment and related software to help architectural, engineering, and construction firms; and sells its own proprietary software products and related services. The Rand Simulation division offers Ansys engineering simulation software to help organizations incorporate engineering simulation technology into the product development process; and provides simulation consulting services to enable organizations to achieve cost savings and design improvements through simulation technology. The Facilities Management division provides ARCHIBUS products for facilities management software for space planning, strategic planning, and lease/property administration; and offers various training, consulting, and support services for the ARCHIBUS products. The ASCENT division provides professional training materials and knowledge products for engineering software tools. The Rand 3D division offers training solutions for Dassault Systèmes and PTC products, including Pro/ENGINEER, CREO, and Windchill. Rand Worldwide, Inc. is based in Baltimore, Maryland.

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.