GlobalFoundries (NASDAQ:GFS – Get Free Report) and Sono-Tek (NASDAQ:SOTK – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.
Risk and Volatility
GlobalFoundries has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500. Comparatively, Sono-Tek has a beta of -0.3, meaning that its share price is 130% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and target prices for GlobalFoundries and Sono-Tek, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GlobalFoundries | 3 | 9 | 4 | 0 | 2.06 |
| Sono-Tek | 0 | 4 | 0 | 0 | 2.00 |
Profitability
This table compares GlobalFoundries and Sono-Tek’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GlobalFoundries | -0.65% | 6.64% | 4.49% |
| Sono-Tek | 7.33% | 8.38% | 6.41% |
Institutional and Insider Ownership
47.9% of Sono-Tek shares are owned by institutional investors. 5.5% of Sono-Tek shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares GlobalFoundries and Sono-Tek”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GlobalFoundries | $6.75 billion | 3.26 | -$265.00 million | ($0.09) | -441.56 |
| Sono-Tek | $20.61 million | 3.26 | $1.27 million | $0.10 | 42.80 |
Sono-Tek has lower revenue, but higher earnings 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.
Summary
Sono-Tek beats GlobalFoundries on 10 of the 14 factors compared between the two stocks.
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.
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.
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