Analyzing Vishay Intertechnology (NYSE:VSH) and Neonode (NASDAQ:NEON)

Neonode (NASDAQ:NEON) and Vishay Intertechnology (NYSE:VSH) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.

Volatility and Risk

Neonode has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500. Comparatively, Vishay Intertechnology has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Neonode and Vishay Intertechnology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neonode	1	0	0	0	1.00
Vishay Intertechnology	1	2	4	2	2.78

Vishay Intertechnology has a consensus price target of $36.67, suggesting a potential upside of 35.68%. Given Vishay Intertechnology’s stronger consensus rating and higher probable upside, analysts clearly believe Vishay Intertechnology is more favorable than Neonode.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Neonode	397.84%	-32.35%	-28.42%
Vishay Intertechnology	0.86%	1.84%	0.94%

Insider & Institutional Ownership

11.6% of Neonode shares are held by institutional investors. Comparatively, 93.7% of Vishay Intertechnology shares are held by institutional investors. 21.9% of Neonode shares are held by insiders. Comparatively, 8.3% of Vishay Intertechnology shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neonode	$2.06 million	6.13	$8.49 million	($0.33)	-2.28
Vishay Intertechnology	$3.07 billion	1.35	-$8.98 million	$0.19	142.24

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

Summary

Vishay Intertechnology beats Neonode on 11 of the 15 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 Vishay Intertechnology

Vishay Intertechnology, Inc. manufactures and sells discrete semiconductors and passive electronic components in Asia, Europe, and the Americas. The company operates through Metal Oxide Semiconductor Field Effect Transistors (MOSFETs), Diodes, Optoelectronic Components, Resistors, Inductors, and Capacitors segments. The MOSFETs segment offers low- and medium-voltage TrenchFET MOSFETs, high-voltage planar MOSFETs, high voltage Super Junction MOSFETs, power integrated circuits, and integrated function power devices. The Diodes segment provides rectifiers, small signal diodes, protection diodes, thyristors/silicon-controlled rectifiers, and power modules. The Optoelectronic Components segment contains standard and customer specific optoelectronic components, such as infrared (IR) emitters and detectors, IR remote control receivers, optocouplers, solid-state relays, optical sensors, light-emitting diodes, 7-segment displays, and IR data transceiver modules. The Resistors segment offers resistors, which are basic components used in various forms of electronic circuitry to adjust and regulate levels of voltage and current. The Inductors segment provides inductors for use as an internal magnetic field to change alternating current phase and resist alternating current. The Capacitors segment offers capacitors, which store energy and discharge it when needed. It sells its products under Siliconix, Dale, Draloric, Beyschlag, Sfernice, MCB, UltraSource, Applied Thin-Film Products, IHLP, HiRel Systems, Sprague, Vitramon, Barry, Roederstein, ESTA, and BCcomponents brand names. The company serves industrial, automotive, telecommunications, computing, consumer products, power supplies, military and aerospace, and medical end markets. Vishay Intertechnology, Inc. was incorporated in 1962 and is headquartered in Malvern, Pennsylvania.