Smith Micro Software (NASDAQ:SMSI – Get Free Report) and Neonode (NASDAQ:NEON – Get Free Report) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, valuation, dividends and earnings.
Analyst Ratings
This is a breakdown of recent ratings for Smith Micro Software and Neonode, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Smith Micro Software | 1 | 0 | 1 | 0 | 2.00 |
| Neonode | 1 | 1 | 0 | 0 | 1.50 |
Smith Micro Software presently has a consensus price target of $12.50, indicating a potential upside of 382.63%. Neonode has a consensus price target of $6.00, indicating a potential upside of 547.39%. Given Neonode’s higher probable upside, analysts plainly believe Neonode is more favorable than Smith Micro Software.
Risk & Volatility
Valuation and Earnings
This table compares Smith Micro Software and Neonode”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Smith Micro Software | $16.96 million | 0.78 | -$29.33 million | ($6.90) | -0.38 |
| Neonode | $2.06 million | 7.55 | $8.49 million | ($0.32) | -2.90 |
Neonode has lower revenue, but higher earnings than Smith Micro Software. Neonode is trading at a lower price-to-earnings ratio than Smith Micro Software, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
20.8% of Smith Micro Software shares are owned by institutional investors. Comparatively, 11.6% of Neonode shares are owned by institutional investors. 34.7% of Smith Micro Software shares are owned by company insiders. Comparatively, 21.9% of Neonode shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Smith Micro Software and Neonode’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Smith Micro Software | -165.35% | -55.78% | -41.02% |
| Neonode | 386.64% | -34.66% | -30.25% |
Summary
Neonode beats Smith Micro Software on 8 of the 14 factors compared between the two stocks.
About Smith Micro Software
Smith Micro Software, Inc. engages in the development and sale of software to enhance the mobile experience to wireless and cable service providers in the Americas, Europe, the Middle East, and Africa. The company offers SafePath Family, SafePath IoT, SafePath Home, and SafePath Premium product suite, which provides tools to protect digital lifestyles and manage connected devices inside and outside the home; and CommSuite, a messaging platform that helps mobile service provides deliver a next-generation voicemail experience to mobile subscribers, as well as enables multi-language voice-to-text (VTT) transcription messaging. It also offers ViewSpot, a retail display management platform that provides on-screen and interactive demos to wireless carriers and other smartphone retailers; and technical support and customer services. Smith Micro Software, Inc. was founded in 1982 and is headquartered in Pittsburgh, Pennsylvania.
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.
Receive News & Ratings for Smith Micro Software Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Smith Micro Software and related companies with MarketBeat.com's FREE daily email newsletter.
