Sono-Tek (NASDAQ:SOTK) vs. Qualcomm (NASDAQ:QCOM) Financial Analysis

Sono-Tek (NASDAQ:SOTK) and Qualcomm (NASDAQ:QCOM) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Sono-Tek and Qualcomm”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sono-Tek	$20.91 million	3.91	$1.81 million	$0.11	47.27
Qualcomm	$44.28 billion	4.19	$5.54 billion	$9.20	19.16

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

Volatility & Risk

Sono-Tek has a beta of -0.05, indicating that its share price is 105% less volatile than the S&P 500. Comparatively, Qualcomm has a beta of 1.63, indicating that its share price is 63% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Sono-Tek and Qualcomm, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sono-Tek	0	1	1	0	2.50
Qualcomm	1	20	15	1	2.43

Sono-Tek presently has a consensus target price of $8.50, suggesting a potential upside of 63.46%. Qualcomm has a consensus target price of $220.45, suggesting a potential upside of 25.08%. Given Sono-Tek’s stronger consensus rating and higher possible upside, equities analysts clearly believe Sono-Tek is more favorable than Qualcomm.

Insider & Institutional Ownership

47.9% of Sono-Tek shares are held by institutional investors. Comparatively, 74.3% of Qualcomm shares are held by institutional investors. 5.5% of Sono-Tek shares are held by insiders. Comparatively, 0.1% of Qualcomm shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Sono-Tek and Qualcomm’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sono-Tek	8.64%	9.52%	7.45%
Qualcomm	22.31%	42.11%	19.33%

Summary

Qualcomm beats Sono-Tek on 11 of the 15 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 Qualcomm

Qualcomm Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies for use in wireless voice and data communications, networking, computing, multimedia, and position location products. The QTL segment grants licenses or provides rights to use portions of its intellectual property portfolio, which include various patent rights useful in the manufacture and sale of wireless products comprising products implementing CDMA2000, WCDMA, LTE and/or OFDMA-based 5G standards and their derivatives. The QSI segment invests in early-stage companies in various industries, including 5G, artificial intelligence, automotive, consumer, enterprise, cloud, IoT, and extended reality, and investments, including non-marketable equity securities and, to a lesser extent, marketable equity securities, and convertible debt instruments. It also provides development, and other services and related products to the United States government agencies and their contractors. The company was incorporated in 1985 and is headquartered in San Diego, California.