Key Tronic (NASDAQ:KTCC) versus Neonode (NASDAQ:NEON) Head to Head Analysis

Key Tronic (NASDAQ:KTCC) and Neonode (NASDAQ:NEON) are both small-cap technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, earnings and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Key Tronic	-12.36%	-7.05%	-2.18%
Neonode	397.84%	-32.35%	-28.42%

Volatility and Risk

Key Tronic has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Neonode has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Key Tronic and Neonode, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Key Tronic	1	0	0	0	1.00
Neonode	1	0	0	0	1.00

Insider and Institutional Ownership

40.7% of Key Tronic shares are owned by institutional investors. Comparatively, 11.6% of Neonode shares are owned by institutional investors. 7.9% of Key Tronic shares are owned by company insiders. Comparatively, 21.9% of Neonode shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Key Tronic	$386.67 million	0.06	-$47.79 million	($4.40)	-0.50
Neonode	$2.06 million	7.41	$8.49 million	($0.33)	-2.76

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

Summary

Neonode beats Key Tronic on 6 of the 11 factors compared between the two stocks.

About Key Tronic

Key Tronic Corporation provides contract manufacturing services to original equipment manufacturers in the United States and internationally. The company offers integrated electronic and mechanical engineering, assembly, sourcing and procurement, logistics, and new product testing services. Its services include product design; surface mount technologies and pin through hole capability for printed circuit board assembly; tool making; precision plastic molding; sheet metal fabrication and painting; liquid injection molding; complex assembly; prototype design; and full product assembly services. The company manufactures and sells keyboards and other input devices. It markets its products and services primarily through field sales people and distributors. Key Tronic Corporation was incorporated in 1969 and is headquartered in Spokane Valley, Washington.

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.