Neonode (NASDAQ:NEON) versus ImageWare Systems (OTCMKTS:IWSY) Critical Comparison

Neonode (NASDAQ:NEON) and ImageWare Systems (OTCMKTS:IWSY) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Profitability

This table compares Neonode and ImageWare Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Neonode	411.88%	-37.98%	-32.59%
ImageWare Systems	N/A	N/A	N/A

Earnings and Valuation

This table compares Neonode and ImageWare Systems”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neonode	$2.06 million	14.01	$8.49 million	($0.32)	-5.38
ImageWare Systems	N/A	N/A	N/A	N/A	N/A

Neonode has higher revenue and earnings than ImageWare Systems.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Neonode and ImageWare Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neonode	1	1	0	0	1.50
ImageWare Systems	0	0	0	0	0.00

Neonode presently has a consensus target price of $6.00, indicating a potential upside of 248.84%. Given Neonode’s stronger consensus rating and higher possible upside, equities analysts plainly believe Neonode is more favorable than ImageWare Systems.

Risk and Volatility

Neonode has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, ImageWare Systems has a beta of 2.4, meaning that its stock price is 140% more volatile than the S&P 500.

Institutional and Insider Ownership

11.6% of Neonode shares are owned by institutional investors. Comparatively, 2.2% of ImageWare Systems shares are owned by institutional investors. 23.9% of Neonode shares are owned by company insiders. Comparatively, 37.7% of ImageWare Systems 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

Neonode beats ImageWare Systems on 5 of the 9 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 ImageWare Systems

ImageWare Systems, Inc. operates as a biometric solution provider in the United States and internationally. It offers Imageware Biometric Engine, a biometric identity and authentication database built for multi-biometric enrollment, management, and authentication. The company also provides Imageware Proof that enables an entity to prove user identity from their biometrics, government issued ID, and credit bureau data; Imageware Capture that enables the capture of biographic and biometric details, such as face, fingerprint, palm print, and iris, as well as scars, marks, and tattoos; Imageware Identify, which enables a user to identify others from their biometrics; and Imageware Investigate that enables an officer to create digital lineups. In addition, it offers Imageware Credential that enables a user to design, build, and print badges for access control systems, which includes tickets, smart badges, wristbands, personal identity verification cards, and others; Imageware Digital ID, a decentralized identity service that enables self-sovereign identity underpinned by blockchain technology tied to biometrics; and Imageware Authenticate, which enables users to leverage multimodal biometrics hosted in a central server or cloud to log in to services and applications from a device. Further, the company provides Law Enforcement 2.0 solution which enables state, local, and federal agencies to capture, archive, search, retrieve, and share digital images, fingerprints, and other biometrics, as well as criminal history records on a stand-alone, networked, wireless or browser-based platform. It serves airports and seaports, education, financial, government, healthcare, and law enforcement industries. The company was incorporated in 1987 and is headquartered in San Diego, California.