QuickLogic (NASDAQ:QUIK) vs. Sono-Tek (NASDAQ:SOTK) Head to Head Survey

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

Analyst Recommendations

This is a summary of recent ratings and target prices for QuickLogic and Sono-Tek, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuickLogic	0	0	3	1	3.25
Sono-Tek	0	2	0	0	2.00

QuickLogic presently has a consensus price target of $10.87, suggesting a potential upside of 100.86%. Sono-Tek has a consensus price target of $7.50, suggesting a potential upside of 87.97%. Given QuickLogic’s stronger consensus rating and higher possible upside, research analysts clearly believe QuickLogic is more favorable than Sono-Tek.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
QuickLogic	-40.36%	-27.35%	-13.58%
Sono-Tek	6.93%	8.10%	6.07%

Valuation & Earnings

This table compares QuickLogic and Sono-Tek”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QuickLogic	$20.11 million	4.42	-$3.84 million	($0.47)	-11.51
Sono-Tek	$20.50 million	3.06	$1.27 million	$0.09	44.33

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

Insider and Institutional Ownership

31.5% of QuickLogic shares are held by institutional investors. Comparatively, 47.9% of Sono-Tek shares are held by institutional investors. 1.5% of QuickLogic shares are held by company insiders. Comparatively, 5.5% of Sono-Tek shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

QuickLogic has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, Sono-Tek has a beta of -0.25, meaning that its stock price is 125% less volatile than the S&P 500.

Summary

Sono-Tek beats QuickLogic on 9 of the 15 factors compared between the two stocks.

About QuickLogic

QuickLogic Corporation operates as a fabless semiconductor company in the United States. The company offers embedded FPGA intellectual property, low power, multicore semiconductor system-on-chips, discrete FPGAs, and AI software; and end-to-end artificial intelligence/machine learning solution with accurate sensor algorithms using AI technology. It provides various platforms, such as software tools and eFPGA IP enables the adoption of AI, voice, and sensor processing across aerospace, and defense, consumer/industrial IOT, and consumer electronics markets. In addition, the company engages in the eFPGA IP Licensing business consisting of development and integration of eFPGA technology into custom semiconductor solutions. Further, the company offers silicon products, such as EOS, QuickAI, ArcticLink III, PolarPro 3, PolarPro II, PolarPro, and Eclipse II products; and PASIC 3 and QuickRAM, as well as programming hardware and design software services. The company markets and sells its products to defense industrial base contractors, U.S. government entities, system OEMs, and fabless semiconductor companies through a network of sales managers and distributors in North America, Europe, and the Asia Pacific. It has a strategic partnership with YorChip to develop low-power unified chiplet interconnect express FPGA chiplets. The company was founded in 1988 and is headquartered in San Jose, California.

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.