Sonim Technologies (NASDAQ:SONM) and AST SpaceMobile (NASDAQ:ASTS) Critical Contrast

AST SpaceMobile (NASDAQ:ASTS) and Sonim Technologies (NASDAQ:SONM) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, dividends, valuation and profitability.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AST SpaceMobile	$4.42 million	3,807.19	-$300.08 million	($1.99)	-26.72
Sonim Technologies	$58.30 million	0.20	-$33.65 million	($2.93)	-0.23

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

Profitability

This table compares AST SpaceMobile and Sonim Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AST SpaceMobile	-7,033.22%	-23.56%	-13.79%
Sonim Technologies	-52.00%	-465.12%	-70.96%

Institutional & Insider Ownership

61.0% of AST SpaceMobile shares are held by institutional investors. Comparatively, 3.3% of Sonim Technologies shares are held by institutional investors. 34.2% of AST SpaceMobile shares are held by company insiders. Comparatively, 49.8% of Sonim Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and price targets for AST SpaceMobile and Sonim Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AST SpaceMobile	0	3	5	0	2.63
Sonim Technologies	0	0	0	0	0.00

AST SpaceMobile presently has a consensus target price of $45.34, indicating a potential downside of 14.72%. Given AST SpaceMobile’s stronger consensus rating and higher possible upside, research analysts plainly believe AST SpaceMobile is more favorable than Sonim Technologies.

Risk and Volatility

AST SpaceMobile has a beta of 2.27, suggesting that its share price is 127% more volatile than the S&P 500. Comparatively, Sonim Technologies has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500.

Summary

AST SpaceMobile beats Sonim Technologies on 9 of the 14 factors compared between the two stocks.

About AST SpaceMobile

AST SpaceMobile, Inc., together with its subsidiaries, develops and provides access to a space-based cellular broadband network for smartphones in the United States. Its SpaceMobile service provides cellular broadband services to end-users who are out of terrestrial cellular coverage. The company was founded in 2017 and is headquartered in Midland, Texas.

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.