Oracle (NYSE:ORCL) vs. Neonode (NASDAQ:NEON) Head-To-Head Review

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

Volatility & Risk

Neonode has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, Oracle has a beta of 1.65, suggesting that its share price is 65% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Neonode	408.88%	-38.60%	-32.68%
Oracle	25.28%	70.60%	9.22%

Valuation and Earnings

This table compares Neonode and Oracle”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neonode	$3.11 million	10.47	-$6.47 million	($0.32)	-6.06
Oracle	$57.40 billion	8.87	$12.44 billion	$5.32	33.29

Oracle has higher revenue and earnings than Neonode. Neonode is trading at a lower price-to-earnings ratio than Oracle, 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, 42.4% of Oracle shares are held by institutional investors. 23.9% of Neonode shares are held by company insiders. Comparatively, 40.9% of Oracle 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 recent ratings and recommmendations for Neonode and Oracle, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neonode	1	1	0	0	1.50
Oracle	2	10	26	3	2.73

Neonode presently has a consensus price target of $6.00, suggesting a potential upside of 209.28%. Oracle has a consensus price target of $300.46, suggesting a potential upside of 69.64%. Given Neonode’s higher possible upside, equities analysts clearly believe Neonode is more favorable than Oracle.

Summary

Oracle beats Neonode on 12 of the 15 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 Oracle

Oracle Corporation offers products and services that address enterprise information technology environments worldwide. Its Oracle cloud software as a service offering include various cloud software applications, including Oracle Fusion cloud enterprise resource planning (ERP), Oracle Fusion cloud enterprise performance management, Oracle Fusion cloud supply chain and manufacturing management, Oracle Fusion cloud human capital management, Oracle Cerner healthcare, Oracle Advertising, and NetSuite applications suite, as well as Oracle Fusion Sales, Service, and Marketing. The company also offers cloud-based industry solutions for various industries; Oracle application licenses; and Oracle license support services. In addition, it provides cloud and license business' infrastructure technologies, such as the Oracle Database and MySQL Database; Java, a software development language; and middleware, including development tools and others. The company's cloud and license business' infrastructure technologies also comprise cloud-based compute, storage, and networking capabilities; and Oracle autonomous database, MySQL HeatWave, Internet-of-Things, digital assistant, and blockchain. Further, it provides hardware products and other hardware-related software offerings, including Oracle engineered systems, enterprise servers, storage solutions, industry-specific hardware, virtualization software, operating systems, management software, and related hardware services; and consulting and customer services. The company markets and sells its cloud, license, hardware, support, and services offerings directly to businesses in various industries, government agencies, and educational institutions, as well as through indirect channels. The company has a collaboration with Amdocs Limited to empower customers on their journey towards cloud and digital adoption. Oracle Corporation was founded in 1977 and is headquartered in Austin, Texas.