Reviewing Fanuc (OTCMKTS:FANUY) and Sono-Tek (NASDAQ:SOTK)

Sono-Tek (NASDAQ:SOTK) and Fanuc (OTCMKTS:FANUY) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Profitability

This table compares Sono-Tek and Fanuc’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%
Fanuc	21.53%	10.47%	9.42%

Volatility & Risk

Sono-Tek has a beta of -0.1, suggesting that its share price is 110% less volatile than the S&P 500. Comparatively, Fanuc has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Institutional & Insider Ownership

47.9% of Sono-Tek shares are owned by institutional investors. Comparatively, 1.5% of Fanuc shares are owned by institutional investors. 5.6% of Sono-Tek shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations for Sono-Tek and Fanuc, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sono-Tek	0	2	1	0	2.33
Fanuc	0	2	0	1	2.67

Sono-Tek currently has a consensus target price of $7.75, suggesting a potential upside of 78.98%. Given Sono-Tek’s higher possible upside, research analysts clearly believe Sono-Tek is more favorable than Fanuc.

Earnings and Valuation

This table compares Sono-Tek and Fanuc”s gross 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	3.26	$1.81 million	$0.12	36.08
Fanuc	$5.70 billion	5.94	$1.10 billion	$0.68	25.35

Fanuc has higher revenue and earnings than Sono-Tek. Fanuc 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

Fanuc beats Sono-Tek on 10 of the 15 factors compared between the two stocks.

About Sono-Tek

Sono-Tek Corporation is a precision technology company that designs and manufactures ultrasonic coating and spraying systems. Its equipment uses high-frequency ultrasonic energy to atomize liquids into controlled, uniform sprays, enabling manufacturers to apply thin films, coatings and other materials with minimal overspray and waste. The company offers ultrasonic spray nozzles, integrated coating systems, precision liquid-dispensing equipment and automated or robotic platforms. Its technologies are used in applications including medical devices, electronics, fuel cells, solar and alternative-energy products, glass and other industrial components.

About Fanuc

FANUC Corporation is a Japan-based provider of factory automation equipment and services. Its products include computer numerical control (CNC) systems and machine tools, industrial robots, and automation systems used in manufacturing. The company also makes ROBOMACHINE products, including machining centers, electric injection molding machines, and wire electrical discharge machining equipment. FANUC provides related software, maintenance, and support services to help customers automate production processes.