Head-To-Head Contrast: Sono-Tek (NASDAQ:SOTK) & indie Semiconductor (NASDAQ:INDI)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sono-Tek	6.93%	8.10%	6.07%
indie Semiconductor	-71.98%	-28.43%	-14.40%

Institutional & Insider Ownership

47.9% of Sono-Tek shares are held by institutional investors. Comparatively, 67.7% of indie Semiconductor shares are held by institutional investors. 5.5% of Sono-Tek shares are held by insiders. Comparatively, 5.6% of indie Semiconductor shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Sono-Tek and indie Semiconductor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sono-Tek	0	2	0	0	2.00
indie Semiconductor	0	1	5	0	2.83

Sono-Tek presently has a consensus price target of $7.50, suggesting a potential upside of 129.36%. indie Semiconductor has a consensus price target of $5.90, suggesting a potential upside of 38.50%. Given Sono-Tek’s higher possible upside, equities research analysts clearly believe Sono-Tek is more favorable than indie Semiconductor.

Risk & Volatility

Sono-Tek has a beta of -0.12, indicating that its stock price is 112% less volatile than the S&P 500. Comparatively, indie Semiconductor has a beta of 2.23, indicating that its stock price is 123% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sono-Tek	$20.50 million	2.51	$1.27 million	$0.09	36.33
indie Semiconductor	$216.68 million	4.25	-$132.60 million	($0.84)	-5.07

Sono-Tek has higher earnings, but lower revenue than indie Semiconductor. indie Semiconductor is trading at a lower price-to-earnings ratio than Sono-Tek, indicating that it is currently the more affordable of 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 indie Semiconductor

indie Semiconductor, Inc. provides automotive semiconductors and software solutions for advanced driver assistance systems, autonomous vehicle, in-cabin, connected car, and electrification applications in the United States, South America, rest of North America, Greater China, South Korea, rest of the Asia Pacific, and Europe. It offers ultrasonic sensors for parking assist and systems; radar sensors for audio assistance and reverse information; front cameras for vehicle detection, collision avoidance, and sign reading; and side/inside cameras for blind spot and lane change assist, and driver behavior monitoring. The company also provides LiDAR for distance, speed, and obstacle detection, collision avoidance, and emergency brake system; and long range RADAR for audio assistance, obstacle detection, and ACC stop and go. In addition, it designs and manufactures photonic components on various technology platforms, including fiber Bragg gratings, low-noise lasers, athermal and tunable packaging, photonic integration, and low-noise and high-speed electronics. The company was founded in 2007 and is headquartered in Aliso Viejo, California.