GlobalFoundries (NASDAQ:GFS – Get Free Report) and Sono-Tek (NASDAQ:SOTK – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.
Analyst Recommendations
This is a summary of current recommendations and price targets for GlobalFoundries and Sono-Tek, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GlobalFoundries | 3 | 9 | 4 | 0 | 2.06 |
| Sono-Tek | 0 | 4 | 0 | 0 | 2.00 |
GlobalFoundries presently has a consensus target price of $40.46, suggesting a potential upside of 1.82%. Sono-Tek has a consensus target price of $7.50, suggesting a potential upside of 75.23%. Given Sono-Tek’s higher probable upside, analysts clearly believe Sono-Tek is more favorable than GlobalFoundries.
Insider & Institutional Ownership
Profitability
This table compares GlobalFoundries and Sono-Tek’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GlobalFoundries | -0.65% | 6.64% | 4.49% |
| Sono-Tek | 7.33% | 8.38% | 6.41% |
Earnings & Valuation
This table compares GlobalFoundries and Sono-Tek”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GlobalFoundries | $6.75 billion | 3.26 | -$265.00 million | ($0.09) | -441.56 |
| Sono-Tek | $20.61 million | 3.26 | $1.27 million | $0.10 | 42.80 |
Sono-Tek has lower revenue, but higher earnings than GlobalFoundries. GlobalFoundries is trading at a lower price-to-earnings ratio than Sono-Tek, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
GlobalFoundries has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500. Comparatively, Sono-Tek has a beta of -0.3, indicating that its share price is 130% less volatile than the S&P 500.
Summary
Sono-Tek beats GlobalFoundries on 10 of the 14 factors compared between the two stocks.
About GlobalFoundries
GlobalFoundries Inc., a semiconductor foundry, provides range of mainstream wafer fabrication services and technologies worldwide. It manufactures various semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units. GlobalFoundries Inc. has a strategic partnership with Efficient Computer to develop high-performance computer processors. The company was incorporated in 2008 and is headquartered in Malta, New York.
About Sono-Tek
Sono-Tek Corporation designs and manufactures ultrasonic coating systems for applying on parts and components for the microelectronics/electronics, alternative energy, medical, industrial, and research and development/other markets worldwide. The company also designs and manufactures custom-engineered ultrasonic coating systems; and provides nozzles and generators for manufacturers' equipment. Its products include integrated multi-axis coating systems, integrated coating systems, fluxing systems, OEM systems, and other related systems. In addition, the company provides surface coating solutions and application consulting services. It markets and distributes its products through direct sales personnel, select independent distributors, and sales representatives. The company was incorporated in 1975 and is based in Milton, New York.
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