Comparing Sonim Technologies (NASDAQ:SONM) & Ubiquiti (NYSE:UI)

Ubiquiti (NYSE:UI) and Sonim Technologies (NASDAQ:SONM) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.

Insider and Institutional Ownership

4.0% of Ubiquiti shares are owned by institutional investors. Comparatively, 3.3% of Sonim Technologies shares are owned by institutional investors. 93.1% of Ubiquiti shares are owned by insiders. Comparatively, 49.8% of Sonim Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Ubiquiti has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500. Comparatively, Sonim Technologies has a beta of 1.88, indicating that its stock price is 88% more volatile than the S&P 500.

Valuation & Earnings

This table compares Ubiquiti 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
Ubiquiti	$2.57 billion	14.30	$711.92 million	$11.77	51.70
Sonim Technologies	$58.30 million	0.22	-$33.65 million	($2.93)	-0.24

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ubiquiti	27.66%	166.22%	51.53%
Sonim Technologies	-53.77%	-1,627.75%	-73.19%

Analyst Ratings

This is a summary of current ratings for Ubiquiti and Sonim Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ubiquiti	1	0	1	0	2.00
Sonim Technologies	0	0	0	0	0.00

Ubiquiti presently has a consensus price target of $499.67, indicating a potential downside of 17.89%. Given Ubiquiti’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Ubiquiti is more favorable than Sonim Technologies.

Summary

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

About Ubiquiti

Ubiquiti Inc. develops networking technology for service providers, enterprises, and consumers. The company develops technology platforms for high-capacity distributed Internet access, unified information technology, and consumer electronics for professional, home, and personal use. Its service provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems, and routing and related software; and enterprise product platforms provide wireless LAN infrastructure, video surveillance products, switching and routing solutions, security gateways, door access systems, and other WLAN products. The company also provides technology platforms, such as airMAX, which include proprietary protocols that contain technologies for minimizing signal noise; EdgeMAX, a software and system routing platform; airFiber, a wireless backhaul point-to-point radio system; and UFiber GPON, a plug and play fiber network technology to build high speed fiber internet networks. In addition, it offers UniFi Gateway Console, an enterprise class router and security gateway device; UniFi Wi-Fi, an enterprise Wi-Fi system; UniFi Protect, a video surveillance system, which provides statistical reporting and advanced analytics; UniFi Switch that deliver performance, switching, and power of ethernet support for enterprise networks; UniFi Access, a door access system; and UniFi Talk, a plug-and-play phone system and VoIP subscription service. Further, the company provides base stations, radios, backhaul equipment, and customer premise equipment; embedded radio products; and antennas. It serves customers through a network of distributors, online retailers, and direct to customers worldwide. The company was formerly known as Ubiquiti Networks, Inc. and changed its name to Ubiquiti Inc. in August 2019. Ubiquiti Inc. was incorporated in 2003 and is headquartered in New York, New York.

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.