Comparing Sono-Tek (NASDAQ:SOTK) and Alpha and Omega Semiconductor (NASDAQ:AOSL)

Sono-Tek (NASDAQ:SOTK) and Alpha and Omega Semiconductor (NASDAQ:AOSL) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, earnings, dividends and analyst recommendations.

Profitability

This table compares Sono-Tek and Alpha and Omega Semiconductor’s 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%
Alpha and Omega Semiconductor	-13.93%	-0.83%	-0.66%

Earnings & Valuation

This table compares Sono-Tek and Alpha and Omega Semiconductor”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sono-Tek	$20.61 million	3.03	$1.27 million	$0.10	39.70
Alpha and Omega Semiconductor	$696.78 million	0.80	-$96.98 million	($3.25)	-5.70

Sono-Tek has higher earnings, but lower revenue than Alpha and Omega Semiconductor. Alpha and Omega Semiconductor 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 & Risk

Sono-Tek has a beta of -0.21, suggesting that its stock price is 121% less volatile than the S&P 500. Comparatively, Alpha and Omega Semiconductor has a beta of 2.19, suggesting that its stock price is 119% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Sono-Tek and Alpha and Omega Semiconductor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sono-Tek	0	3	0	1	2.50
Alpha and Omega Semiconductor	1	2	1	0	2.00

Sono-Tek currently has a consensus target price of $7.50, indicating a potential upside of 88.92%. Alpha and Omega Semiconductor has a consensus target price of $24.33, indicating a potential upside of 31.25%. Given Sono-Tek’s stronger consensus rating and higher possible upside, research analysts plainly believe Sono-Tek is more favorable than Alpha and Omega Semiconductor.

Insider and Institutional Ownership

47.9% of Sono-Tek shares are held by institutional investors. Comparatively, 79.0% of Alpha and Omega Semiconductor shares are held by institutional investors. 5.5% of Sono-Tek shares are held by company insiders. Comparatively, 16.7% of Alpha and Omega Semiconductor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Sono-Tek beats Alpha and Omega Semiconductor on 10 of the 15 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 Alpha and Omega Semiconductor

Alpha and Omega Semiconductor Limited designs, develops, and supplies power semiconductor products for computing, consumer electronics, communication, and industrial applications in Hong Kong, China, South Korea, the United States, and internationally. It offers power discrete products, including metal-oxide-semiconductor field-effect transistors (MOSFET), SRFETs, XSFET, electrostatic discharge, protected MOSFETs, high and mid-voltage MOSFETs, and insulated gate bipolar transistors for use in smart phone chargers, battery packs, notebooks, desktop and servers, data centers, base stations, graphics card, game boxes, TVs, AC adapters, power supplies, motor control, power tools, E-vehicles, white goods and industrial motor drives, UPS systems, solar inverters, and industrial welding. The company also provides power ICs that deliver power, as well as control and regulate the power management variables, such as the flow of current and level of voltage. Its power ICs are used in flat panel displays, TVs, notebooks, graphic cards, servers, DVD/Blu-Ray players, set-top boxes, and networking equipment. In addition, the company offers transient voltage suppressors, analog switch, and electromagnetic interference filter for notebooks, desktop PCs, tablets, flat panel displays, TVs, smart phones, and portable electronic devices; and 650V and 1200V SiC MOSFET. Alpha and Omega Semiconductor Limited was incorporated in 2000 and is headquartered in Sunnyvale, California.