Ericsson (NASDAQ:ERIC) and Sonim Technologies (NASDAQ:SONM) Head to Head Review

Ericsson (NASDAQ:ERIC) and Sonim Technologies (NASDAQ:SONM) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, valuation and profitability.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ericsson	$23.45 billion	1.14	$1.89 million	$0.50	16.02
Sonim Technologies	$58.30 million	0.17	-$33.65 million	($2.93)	-0.19

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

Insider & Institutional Ownership

8.0% of Ericsson shares are held by institutional investors. Comparatively, 3.3% of Sonim Technologies shares are held by institutional investors. 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 company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Ericsson and Sonim Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ericsson	1	2	0	0	1.67
Sonim Technologies	0	0	0	0	0.00

Ericsson currently has a consensus price target of $9.80, indicating a potential upside of 22.35%. Given Ericsson’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Ericsson is more favorable than Sonim Technologies.

Volatility & Risk

Ericsson has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, Sonim Technologies has a beta of 1.88, suggesting that its share price is 88% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ericsson	7.06%	21.17%	6.64%
Sonim Technologies	-53.77%	-1,627.75%	-73.19%

Summary

Ericsson beats Sonim Technologies on 11 of the 13 factors compared between the two stocks.

About Ericsson

Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions for telcom operators and enterprise customers in various sectors in North America, Europe, Latin America, the Middle East, Africa, North East Asia, South East Asia, Oceania, and India. It operates in four segments: Networks; Cloud Software and Services; Enterprise; and Other. The Networks segment offers radio access network (RAN) solutions for various network spectrum bands, including purpose-built and open RAN-prepared hardware and software. This segment also provides cloud RAN; transport solutions; passive and active antennas; and a range of service portfolios covering network deployment and support. The Cloud Software and Services segment offers core networks, business and operational support systems, network design and optimization, and managed network services. The Enterprise segment offers a global communications platform, including cloud-based unified communications as a service, contact center as a service, and communications platform as a service; enterprise wireless solutions comprising private wireless networks and wireless wan pre-packaged solutions; and technologies and new business solutions, such as mobile financial services, security solutions, and advertising services. The Other segment includes Redbee media that prepares and distributes live and video services for broadcasters, sports leagues, and communications service providers. It offers its services through wholesalers and distributors. The company was formerly known as Allmanna Telefon AB LM Ericsson and changed its name to Telefonaktiebolaget LM Ericsson (publ) in January 1926. Telefonaktiebolaget LM Ericsson (publ) was founded in 1876 and is headquartered in Stockholm, Sweden.

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.