Sono-Tek (NASDAQ:SOTK – Get Free Report) and LiqTech International (NASDAQ:LIQT – Get Free Report) are both small-cap industrials companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.
Institutional & Insider Ownership
47.9% of Sono-Tek shares are held by institutional investors. Comparatively, 35.1% of LiqTech International shares are held by institutional investors. 5.6% of Sono-Tek shares are held by company insiders. Comparatively, 3.3% of LiqTech International shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Sono-Tek and LiqTech International, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sono-Tek | 0 | 1 | 2 | 0 | 2.67 |
| LiqTech International | 1 | 1 | 1 | 0 | 2.00 |
Sono-Tek currently has a consensus target price of $7.75, indicating a potential upside of 64.89%. LiqTech International has a consensus target price of $1.30, indicating a potential upside of 319.08%. Given LiqTech International’s higher possible upside, analysts plainly believe LiqTech International is more favorable than Sono-Tek.
Profitability
This table compares Sono-Tek and LiqTech International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sono-Tek | 9.32% | 9.95% | 7.81% |
| LiqTech International | -63.18% | -69.03% | -32.37% |
Risk & Volatility
Sono-Tek has a beta of -0.1, indicating that its share price is 110% less volatile than the S&P 500. Comparatively, LiqTech International has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.
Earnings and Valuation
This table compares Sono-Tek and LiqTech International”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sono-Tek | $20.91 million | 3.54 | $1.81 million | $0.12 | 39.17 |
| LiqTech International | $16.51 million | 0.62 | -$8.60 million | ($0.84) | -0.37 |
Sono-Tek has higher revenue and earnings than LiqTech International. LiqTech International is trading at a lower price-to-earnings ratio than Sono-Tek, indicating that it is currently the more affordable of the two stocks.
Summary
Sono-Tek beats LiqTech International on 11 of the 13 factors compared between the two stocks.
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.
About LiqTech International
LiqTech International, Inc., a clean technology company, designs, develops, produces, markets, and sells automated filtering systems, ceramic silicon carbide liquid applications, and diesel particulate air filters in the United States, Canada, Europe, Asia, and South America. The company operates through Water, Ceramics, and Plastics segments. It also manufactures and sells silicon carbide ceramic filtration technologies for liquid and gas purification; and diesel particulate filters for exhaust emission control solutions to the verified retrofit and the original equipment manufacturer market. In addition, the company develops, manufactures, and sells liquid filtration systems, which are used for the marine scrubber systems, filtration of produced water, industrial applications, pool and spa water, food and beverage application, and silicon carbide membrane technology. Further, it provides flexible and plastics manufacturing products for machining, welding, bending, and solvent cementing. LiqTech International, Inc. sells its products primarily to industrial customers through direct sales, systems integrators, distributors, agents, and partners. The company was formerly known as Blue Moose Media, Inc. and changed its name to LiqTech International, Inc. in October 2011. LiqTech International, Inc. was founded in 2000 and is headquartered in Ballerup, Denmark.
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