The LGL Group (NYSEAMERICAN:LGL) and Neonode (NASDAQ:NEON) are both small-cap industrial products companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.
Earnings & Valuation
This table compares The LGL Group and Neonode's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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The LGL Group | $31.90 million | 1.77 | $7.02 million | N/A | N/A |
Neonode | $6.65 million | 14.07 | $-5,300,000.00 | N/A | N/A |
The LGL Group has higher revenue and earnings than Neonode.
Volatility & Risk
The LGL Group has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Neonode has a beta of 2.9, meaning that its share price is 190% more volatile than the S&P 500.
Insider and Institutional Ownership
22.6% of The LGL Group shares are held by institutional investors. Comparatively, 12.3% of Neonode shares are held by institutional investors. 19.6% of The LGL Group shares are held by insiders. Comparatively, 35.8% of Neonode shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares The LGL Group and Neonode's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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The LGL Group | 6.24% | 6.86% | 6.18% |
Neonode | -128.56% | -129.95% | -75.29% |
Analyst Ratings
This is a breakdown of recent ratings and target prices for The LGL Group and Neonode, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
The LGL Group | 0 | 0 | 0 | 0 | N/A |
Neonode | 0 | 0 | 1 | 0 | 3.00 |
Neonode has a consensus price target of $12.00, suggesting a potential upside of 41.34%. Given Neonode's higher probable upside, analysts plainly believe Neonode is more favorable than The LGL Group.
Summary
The LGL Group beats Neonode on 7 of the 12 factors compared between the two stocks.