Salesforce (NYSE:CRM) and Neonode (NASDAQ:NEON) Head to Head Comparison

Neonode (NASDAQ:NEON) and Salesforce (NYSE:CRM) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.

Profitability

This table compares Neonode and Salesforce’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%
Salesforce	17.91%	14.41%	8.89%

Insider & Institutional Ownership

11.6% of Neonode shares are owned by institutional investors. Comparatively, 80.4% of Salesforce shares are owned by institutional investors. 23.9% of Neonode shares are owned by company insiders. Comparatively, 3.0% of Salesforce shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Neonode has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, Salesforce has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neonode	$2.20 million	13.14	-$6.47 million	($0.32)	-5.38
Salesforce	$37.90 billion	4.69	$6.20 billion	$7.49	25.31

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Neonode and Salesforce, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neonode	1	1	0	0	1.50
Salesforce	1	12	29	1	2.70

Neonode presently has a consensus price target of $6.00, suggesting a potential upside of 248.84%. Salesforce has a consensus price target of $323.57, suggesting a potential upside of 70.68%. Given Neonode’s higher probable upside, research analysts clearly believe Neonode is more favorable than Salesforce.

Summary

Salesforce beats Neonode on 11 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 Salesforce

Salesforce, Inc. provides Customer Relationship Management (CRM) technology that brings companies and customers together worldwide. The company's service includes sales to store data, monitor leads and progress, forecast opportunities, gain insights through analytics and artificial intelligence, and deliver quotes, contracts, and invoices; and service that enables companies to deliver trusted and highly personalized customer support at scale. In addition, its platform offering comprise a flexible platform that enables companies of various sizes, locations, and industries to build business workflow and apps with customer; online learning platform that allows anyone to learn in-demand Salesforce skills; and Slack, an intelligent productivity platform. The company's marketing services enables companies to plan, personalize, automate, and optimize customer marketing journey, connecting interaction, and connected products; and commerce services, which empowers shopping experience across various customer touchpoint, such as mobile, web, social, and stores and provides click-to-code tools that offers customers to build and deploy solutions. Further, its analytics offering includes Tableau, an end-to-end analytics solution for range of enterprise use cases and intelligent analytics with AI models, spot trends, predict outcomes, creates summaries, timely recommendations, and take action from any device; and integration service including MuleSoft, which provides building blocks to deliver end-to-end and connected experiences. Additionally, the company provides data cloud, a hyperscale data engine native to Salesforce; vertical services to meet the needs of customers in industries, such as financial services, healthcare and life sciences, manufacturing and automotive and government; and offers salesforce starter for small and medium-sized businesses. Salesforce, Inc. was incorporated in 1999 and is headquartered in San Francisco, California.