Sono-Tek (NASDAQ:SOTK – Get Free Report) and GlobalFoundries (NASDAQ:GFS – Get Free Report) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.
Institutional & Insider Ownership
47.9% of Sono-Tek shares are held by institutional investors. 5.5% of Sono-Tek shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Sono-Tek and GlobalFoundries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sono-Tek | 7.33% | 8.38% | 6.41% |
| GlobalFoundries | -0.65% | 6.64% | 4.49% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sono-Tek | $20.50 million | 3.19 | $1.27 million | $0.10 | 41.60 |
| GlobalFoundries | $6.75 billion | 3.35 | -$265.00 million | ($0.09) | -454.11 |
Sono-Tek has higher earnings, but lower revenue than GlobalFoundries. GlobalFoundries is trading at a lower price-to-earnings ratio than Sono-Tek, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Sono-Tek has a beta of -0.3, suggesting that its stock price is 130% less volatile than the S&P 500. Comparatively, GlobalFoundries has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Sono-Tek and GlobalFoundries, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sono-Tek | 0 | 4 | 0 | 0 | 2.00 |
| GlobalFoundries | 3 | 9 | 4 | 0 | 2.06 |
GlobalFoundries has a consensus target price of $40.46, suggesting a potential downside of 1.00%. Given GlobalFoundries’ stronger consensus rating and higher probable upside, analysts plainly believe GlobalFoundries is more favorable than Sono-Tek.
Summary
Sono-Tek beats GlobalFoundries 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 GlobalFoundries
GlobalFoundries Inc., a semiconductor foundry, provides range of mainstream wafer fabrication services and technologies worldwide. It manufactures various semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units. GlobalFoundries Inc. has a strategic partnership with Efficient Computer to develop high-performance computer processors. The company was incorporated in 2008 and is headquartered in Malta, New York.
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