Analyzing USData (OTCMKTS:USDC) and Neonode (NASDAQ:NEON)

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

Institutional and Insider Ownership

11.6% of Neonode shares are held by institutional investors. 0.6% of USData shares are held by company insiders. Comparatively, 23.9% of Neonode shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

USData has a beta of 769.78, suggesting that its share price is 76,878% more volatile than the S&P 500. Comparatively, Neonode has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for USData and Neonode, as provided by MarketBeat.

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

Neonode has a consensus target price of $6.00, suggesting a potential upside of 143.90%. Given Neonode’s stronger consensus rating and higher possible upside, analysts plainly believe Neonode is more favorable than USData.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
USData	N/A	N/A	N/A	N/A	N/A
Neonode	$3.11 million	13.27	-$6.47 million	($0.32)	-7.69

USData has higher earnings, but lower revenue than Neonode.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
USData	N/A	N/A	N/A
Neonode	408.88%	-38.60%	-32.68%

Summary

Neonode beats USData on 6 of the 9 factors compared between the two stocks.

About USData

USDATA Corp. operates as an independent, global supplier of industrial automation software tools, applications, and consulting services designed to provide businesses with the knowledge and control needed to perfect the products they produce and the processes they manage. USDATA Corp. develops, markets, and supports component-based software products for customers requiring enterprise-wide, open solutions for the industrial automation markets. These software products provide customers real-time computer applications that enable interactive, dynamic, and graphical interfaces to industrial operations. These applications collect, consolidate, and communicate information about an automated process, typically drawn from complex operating sources or from multiple sites throughout an enterprise; and enable the user to interact with and control critical processes. The real-time information provided by its products is intended to enable customers to reduce operating costs, improve product quality, and increase overall throughput and productivity. USDATA’s FactoryLink is a process knowledge and control solution where as its Xfactory is a product knowledge and control software product. It serves customers in a variety of industries, including chemical, oil and gas, food, beverage, automotive, aerospace, telecommunications, electronics, transportation, and other industries. These customers are located in the United States, Europe, Canada, Latin America, and Asia Pacific. The company sells its products and services to end customers and systems integrators through distributors, original equipment manufacturer relationships, and direct sales. USDATA Corp. was founded in 1974 and is based in Richardson, Texas.

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.