Financial Review: Aviat Networks (NASDAQ:AVNW) & Sonim Technologies (NASDAQ:SONM)

Aviat Networks (NASDAQ:AVNW) and Sonim Technologies (NASDAQ:SONM) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.

Valuation & Earnings

This table compares Aviat Networks 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
Aviat Networks	$434.61 million	0.72	$1.34 million	$0.08	304.75
Sonim Technologies	$58.30 million	0.19	-$33.65 million	($1.05)	-10.77

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

Volatility & Risk

Aviat Networks has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500. Comparatively, Sonim Technologies has a beta of 1.89, meaning that its share price is 89% more volatile than the S&P 500.

Insider & Institutional Ownership

78.6% of Aviat Networks shares are held by institutional investors. Comparatively, 3.3% of Sonim Technologies shares are held by institutional investors. 5.3% of Aviat Networks shares are held by insiders. Comparatively, 4.6% of Sonim Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aviat Networks	0.31%	5.77%	2.40%
Sonim Technologies	-53.77%	-1,627.75%	-73.19%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Aviat Networks and Sonim Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aviat Networks	1	0	3	0	2.50
Sonim Technologies	1	0	0	0	1.00

Aviat Networks presently has a consensus target price of $32.00, indicating a potential upside of 31.26%. Given Aviat Networks’ stronger consensus rating and higher possible upside, research analysts clearly believe Aviat Networks is more favorable than Sonim Technologies.

Summary

Aviat Networks beats Sonim Technologies on 13 of the 14 factors compared between the two stocks.

About Aviat Networks

Aviat Networks, Inc. provides microwave networking and wireless access networking solutions in North America, Africa, the Middle East, Europe, Latin America, and the Asia Pacific. The company offers outdoor, indoor, and split-mount radios; microwave routers, switches, and trunking; and private LTE, virtual fiber, and element management products; and hosted software products, such as aviat design, frequency assurance software, and health assurance software. It also provides project services, which includes design and engineering, site and path surveys, assembly and integrations, project management, and install and commission; and managed services, such as network and interface monitoring, network health, onsite maintenance, and remote upgrades. In addition, the company offers support services, including extended warranty, warranty plus, provision support, and license key management, as well as instructor and virtual instructor led training, e-learning and certification services. It serves communications service providers and private network operators, including federal, state and local government agencies, transportation agencies, energy and utility companies, public safety agencies, and broadcast network operators. The company markets its products through a direct sales, service, and support organization; indirect sales channels comprising dealers, resellers, and sales representatives; and through online. Aviat Networks, Inc. company was incorporated in 2006 and is headquartered in Austin, 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.