Comparing Neonode (NASDAQ:NEON) and ZIM (OTCMKTS:ZIMCF)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ZIM	N/A	N/A	N/A
Neonode	-241.38%	-40.64%	-35.78%

Analyst Ratings

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

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

Neonode has a consensus target price of $6.00, indicating a potential upside of 66.67%. Given Neonode’s stronger consensus rating and higher possible upside, analysts clearly believe Neonode is more favorable than ZIM.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZIM	N/A	N/A	-$60,000.00	N/A	N/A
Neonode	$3.11 million	19.42	-$6.47 million	($0.71)	-5.07

ZIM has higher earnings, but lower revenue than Neonode.

Institutional and Insider Ownership

11.6% of Neonode shares are owned by institutional investors. 70.7% of ZIM shares are owned by company insiders. Comparatively, 23.9% of Neonode shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

ZIM beats Neonode on 5 of the 9 factors compared between the two stocks.

About ZIM

ZIM Corporation provides software products and services for the database and mobile markets in the United States, Brazil, Canada, Singapore, and Austria. The company operates in two segments, Mobile and Enterprise Software. It develops and sells ZIM integrated development environment (IDE) software, an enterprise software for use in the design, development, and management of information databases and mission critical applications. The company’s ZIM IDE software provides an IDE for Microsoft Windows, UNIX, and Linux computer operating systems. Its products are used to develop database applications in various industries, including finance, insurance, marketing, human resource, information, and records management. The company also provides migration services and management products; and short message services. ZIM Corporation was founded in 1997 and is headquartered in Ottawa, Canada.

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.