Neonode Inc. (NEON) vs Wetouch Technology Inc. (WETH)

Neonode Inc. and Wetouch Technology Inc. are both Electronic Components companies. Neonode Inc. and Wetouch Technology Inc. are of similar size ($14.8M and $13.9M). Wetouch Technology Inc. trades at the lower P/E: 1.5× against 1.8×. Wetouch Technology Inc. grew revenue faster over the last twelve months: 11.3% against −21.7%. Neonode Inc. has the higher net margin (397.8% vs 17.6%) and the lower return on invested capital (0.00% vs 32.8%). Across the 18 metrics below, Wetouch Technology Inc. leads on 11 and Neonode Inc. on 7.

Valuation

Metric NEON WETH Electronic Components median
P/E 1.81 1.50 39.06
P/S 7.24 0.27 3.22
P/B 0.71 0.09 3.30
Price to free cash flow n/m 1.66 26.65
EV/EBITDA n/m n/m 19.69
EV/Sales (3.16) (2.40) 3.53
Earnings yield 55.17% 66.88% 1.34%
Free cash flow yield (76.08%) 60.36% 0.40%

Profitability

Metric NEON WETH Electronic Components median
Gross margin 98.82% 32.10% 33.21%
Operating margin 345.61% 23.38% 3.53%
Net margin 397.84% 17.57% 2.57%
Free cash flow margin (550.51%) 17.14% 0.20%
Return on equity 48.61% 5.98% 2.60%
Return on assets 41.97% 5.79% 2.50%
Return on invested capital 0.00% 32.84% 2.28%

Growth

Metric NEON WETH Electronic Components median
Revenue growth (TTM) (21.65%) 11.34% 12.01%
EPS growth (last fiscal year) 224.39% 15.38% —
Revenue growth, 5-year CAGR (19.19%) — 7.19%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric NEON WETH Electronic Components median
Debt to equity 0.00 0.00 0.16
Current ratio 10.86 35.99 2.41
Net debt to EBITDA (3.29) (11.85) 0.32

Dividend

Metric NEON WETH Electronic Components median
Dividend yield — — 1.18%
Payout ratio 0.00 — 0.00

Size

Metric NEON WETH Electronic Components median
Market cap 14.79m 13.85m 780.25m

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