Head-To-Head Comparison: Fabrinet (FN) & Neonode (NEON)

Fabrinet (NYSE: FN) and Neonode (NASDAQ:NEON) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Fabrinet and Neonode, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fabrinet 0 0 4 1 3.20
Neonode 0 1 1 0 2.50

Fabrinet presently has a consensus price target of $53.55, indicating a potential upside of 30.61%. Neonode has a consensus price target of $3.00, indicating a potential upside of 197.03%. Given Neonode’s higher probable upside, analysts plainly believe Neonode is more favorable than Fabrinet.

Valuation & Earnings

This table compares Fabrinet and Neonode’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Fabrinet $1.33 billion 1.15 $121.84 million $2.38 17.23
Neonode $9.17 million 5.38 -$3.21 million ($0.10) -10.10

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

Risk and Volatility

Fabrinet has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Neonode has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.

Institutional & Insider Ownership

94.1% of Fabrinet shares are held by institutional investors. Comparatively, 25.3% of Neonode shares are held by institutional investors. 4.3% of Fabrinet shares are held by company insiders. Comparatively, 15.8% of Neonode shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Fabrinet 6.74% 14.95% 9.71%
Neonode -48.19% -123.74% -44.58%

Summary

Fabrinet beats Neonode on 10 of the 14 factors compared between the two stocks.

Fabrinet Company Profile

Fabrinet provides optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers (OEMs) of products, such as optical communication components, modules and sub-systems, industrial lasers, medical devices and sensors. The Company offers a range of optical and electro-mechanical capabilities across the manufacturing process, including process design and engineering, supply chain management, manufacturing, complex printed circuit board assembly, advanced packaging, integration, final assembly and test. The Company’s customer base includes companies in industries that require precision manufacturing capabilities, such as optical communications, industrial lasers, automotive, medical and sensors. Its customers in these industries support end-markets, including automotive, biotechnology, communications, materials processing, medical devices, metrology and semiconductor processing.

Neonode Company Profile

Neonode Inc., formerly SBE, Inc., develops and licenses user interfaces and optical infrared touch solutions. The Company’s technology offers multiple features, including the ability to sense an object’s size, depth, velocity, pressure and proximity to any type of surface. It operates through the touch technology licensing business segment. It licenses its multi-touch technology to original equipment manufacturers (OEMs) and original design manufacturers (ODMs) who incorporate it into devices that they produce and sell. In addition, it develops prototype products and is engaged in product engineering design discussions with various global OEMs and ODMs. The Company offers its family of touch solutions under the brands MultiSensing and zForce. Its solution provides sense enablement through touch and proximity sensing. Its technology has application in various fields, such as laptop computers, all-in-one computers, standalone monitors, printer products and global positioning systems.

What are top analysts saying about Fabrinet? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Fabrinet and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit