Sono-Tek (NASDAQ:SOTK – Get Free Report) and SkyWater Technology (NASDAQ:SKYT – Get Free Report) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.
Insider & Institutional Ownership
47.9% of Sono-Tek shares are owned by institutional investors. Comparatively, 70.0% of SkyWater Technology shares are owned by institutional investors. 5.5% of Sono-Tek shares are owned by company insiders. Comparatively, 37.9% of SkyWater Technology shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current recommendations for Sono-Tek and SkyWater Technology, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sono-Tek | 0 | 2 | 0 | 0 | 2.00 |
| SkyWater Technology | 0 | 0 | 3 | 0 | 3.00 |
Profitability
This table compares Sono-Tek and SkyWater Technology’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% |
| SkyWater Technology | -5.69% | -19.49% | -3.68% |
Valuation & Earnings
This table compares Sono-Tek and SkyWater Technology”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sono-Tek | $20.50 million | 2.81 | $1.27 million | $0.09 | 40.67 |
| SkyWater Technology | $342.27 million | 1.52 | -$6.79 million | ($0.34) | -31.79 |
Sono-Tek has higher earnings, but lower revenue than SkyWater Technology. SkyWater Technology is trading at a lower price-to-earnings ratio than Sono-Tek, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Sono-Tek has a beta of -0.25, indicating that its share price is 125% less volatile than the S&P 500. Comparatively, SkyWater Technology has a beta of 3.41, indicating that its share price is 241% more volatile than the S&P 500.
Summary
Sono-Tek beats SkyWater Technology on 8 of the 14 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 SkyWater Technology
SkyWater Technology, Inc., together with its subsidiaries, operates as a pure-play technology foundry that engages in the provision of semiconductor development, manufacturing, and packaging services in the United States. The company offers engineering and process development support services to co-create technologies with customers; and semiconductor manufacturing services for various silicon-based analog and mixed-signal, micro-electromechanical systems, and rad-hard integrated circuits. It serves customers operating in the computation, aerospace and defense, automotive, bio-health, consumer, and industrial sectors. The company was incorporated in 2016 and is headquartered in Bloomington, Minnesota.
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