Analyzing Sonim Technologies (NASDAQ:SONM) and Comtech Telecommunications (NASDAQ:CMTL)

Sonim Technologies (NASDAQ:SONM) and Comtech Telecommunications (NASDAQ:CMTL) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitability.

Insider & Institutional Ownership

3.3% of Sonim Technologies shares are held by institutional investors. 49.8% of Sonim Technologies shares are held by insiders. Comparatively, 2.1% of Comtech Telecommunications shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Sonim Technologies and Comtech Telecommunications, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sonim Technologies	0	0	0	0	0.00
Comtech Telecommunications	0	0	1	0	3.00

Comtech Telecommunications has a consensus target price of $6.00, suggesting a potential upside of 155.32%. Given Comtech Telecommunications’ stronger consensus rating and higher probable upside, analysts plainly believe Comtech Telecommunications is more favorable than Sonim Technologies.

Profitability

This table compares Sonim Technologies and Comtech Telecommunications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sonim Technologies	-53.77%	-1,627.75%	-73.19%
Comtech Telecommunications	-51.28%	-15.38%	-3.34%

Volatility and Risk

Sonim Technologies has a beta of 1.88, indicating that its share price is 88% more volatile than the S&P 500. Comparatively, Comtech Telecommunications has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500.

Valuation and Earnings

This table compares Sonim Technologies and Comtech Telecommunications”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sonim Technologies	$58.30 million	0.21	-$33.65 million	($2.93)	-0.23
Comtech Telecommunications	$540.40 million	0.13	-$99.99 million	($10.02)	-0.23

Sonim Technologies has higher earnings, but lower revenue than Comtech Telecommunications. Comtech Telecommunications is trading at a lower price-to-earnings ratio than Sonim Technologies, indicating that it is currently the more affordable of the two stocks.

About Sonim Technologies

Sonim Technologies, Inc. provides ruggedized mobile phones and accessories for task workers. The company offers ruggedized mobile phones, such as Sonim XP10, Sonim XP5plus, Sonim XP3plus, and Sonim XP Pro; Sonim mobile hotspot; industrial-grade accessories. It sells its mobile phones and accessories primarily to wireless carriers in the United States and Canada; and sells wireless carrier channels through distribution channels in North America and Europe. The company serves transportation and logistics, construction, manufacturing, facilities management, energy and utility, mining, and public safety sectors. The company was formerly known as NaviSpin.com, Inc. and changed its name to Sonim Technologies, Inc. in December 2001. Sonim Technologies, Inc. was incorporated in 1999 and is headquartered in San Diego, California.

About Comtech Telecommunications

Comtech Telecommunications Corp., together with its subsidiaries, engages in the provision of next-gen telecommunication solutions in the United States and internationally. The company’s Satellite and Space Communications segment offers satellite ground station technologies, services and system integration that facilitates the transmission of voice, video, and data over GEO, MEO and LEO satellite constellations, including solid-state and traveling wave tube power amplifiers, modems, VSAT platforms, and frequency converters; and satellite communications and tracking antenna systems, including high precision full motion fixed and mobile X/Y tracking antennas, RF feeds, reflectors, and radomes. This segment also provides over-the-horizon microwave troposcatter equipment that can transmit digitized voice, video, and data over distances up to 200 miles using the troposphere and diffraction, including the Comtech; and solid-state, RF microwave high-power amplifiers and control components designed for radar, electronic warfare, data link, medical and aviation applications, as well as engages in the procurement and supply chain management of electrical, electronic, and electromechanical parts for satellite, launch vehicle, and manned space applications. Its Terrestrial and Wireless Networks segment offers next generation 911 solutions, which includes emergency call routing, location validation, policy-based routing rules, logging, and security functionality; emergency services IP network transport infrastructure for emergency services communications and support; call handling applications for public safety answering points; wireless emergency alerts solutions for network operators; and software and equipment for location-based and text messaging services for various applications including for public safety, commercial, and government services. The company was founded in 1967 and is headquartered in Melville, New York.