Teledyne Technologies (NYSE:TDY) and Neonode (NASDAQ:NEON) Critical Review

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

Analyst Recommendations

This is a summary of current recommendations for Teledyne Technologies and Neonode, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teledyne Technologies	0	4	3	1	2.62
Neonode	1	0	0	0	1.00

Teledyne Technologies presently has a consensus price target of $730.17, indicating a potential upside of 11.10%. Given Teledyne Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Teledyne Technologies is more favorable than Neonode.

Risk & Volatility

Teledyne Technologies has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Neonode has a beta of 1.65, meaning that its stock price is 65% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Teledyne Technologies	15.75%	10.89%	7.65%
Neonode	397.84%	-32.35%	-28.42%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teledyne Technologies	$6.52 billion	4.64	$894.80 million	$21.88	30.04
Neonode	$2.06 million	5.38	$8.49 million	($0.33)	-2.00

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

Insider & Institutional Ownership

91.6% of Teledyne Technologies shares are held by institutional investors. Comparatively, 11.6% of Neonode shares are held by institutional investors. 1.4% of Teledyne Technologies shares are held by insiders. Comparatively, 21.9% of Neonode shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Teledyne Technologies beats Neonode on 11 of the 15 factors compared between the two stocks.

About Teledyne Technologies

Teledyne Technologies Incorporated, together with its subsidiaries, provides enabling technologies for industrial growth markets in the United States and internationally. Its Digital Imaging segment provides visible spectrum sensors and digital cameras; and infrared, ultraviolet, visible, and X-ray spectra; as well as micro electromechanical systems and semiconductors, including analog-to-digital and digital-to-analog converters. This segment also offers cooled and uncooled infrared or thermal products, including sensors, camera cores, and camera systems; high-resolution, low-dose X-ray sensors, high-power microwave, and high-energy X-ray subsystems; and instruments for the measurement of physical properties and maritime products; as well as develops and manufactures multi-spectrum electro-optic/infrared imaging systems and associated products, such as lasers, optics, and radars, CBRNE (Chemical, Biological, Radiological, Nuclear and Explosive detectors), and unmanned air and ground systems. The company's Instrumentation segment offers monitoring, control, and electronic test and measurement equipment; and power and communications connectivity devices for distributed instrumentation systems and sensor networks. The company's Aerospace and Defense Electronics segment provides electronic components and subsystems, data acquisition and communications components and equipment, harsh environment interconnects, general aviation batteries, and other components; and onboard avionics systems and ground-based applications, aircraft data and connectivity solutions, hardware systems, and software applications. Its Engineered Systems segment offers systems engineering and integration, technology development, and manufacturing solutions for defense, space, environmental, and energy applications; and designs and manufactures electrochemical energy systems and electronics for military applications. The company was founded in 1960 and is headquartered in Thousand Oaks, California.

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.