AllianceBernstein (NYSE:AB) vs. Sonim Technologies (NASDAQ:SONM) Critical Review

Sonim Technologies (NASDAQ:SONM) and AllianceBernstein (NYSE:AB) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sonim Technologies	N/A	N/A	-40.82%
AllianceBernstein	6.60%	25.94%	25.92%

Analyst Recommendations

This is a summary of recent recommendations for Sonim Technologies and AllianceBernstein, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sonim Technologies	1	0	0	0	1.00
AllianceBernstein	0	5	2	0	2.29

AllianceBernstein has a consensus price target of $39.50, indicating a potential upside of 7.46%. Given AllianceBernstein’s stronger consensus rating and higher probable upside, analysts clearly believe AllianceBernstein is more favorable than Sonim Technologies.

Insider and Institutional Ownership

3.3% of Sonim Technologies shares are owned by institutional investors. Comparatively, 19.3% of AllianceBernstein shares are owned by institutional investors. 4.6% of Sonim Technologies shares are owned by company insiders. Comparatively, 2.7% of AllianceBernstein shares are owned 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.

Earnings & Valuation

This table compares Sonim Technologies and AllianceBernstein”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sonim Technologies	N/A	N/A	-$20.66 million	($8.02)	-0.39
AllianceBernstein	$4.53 billion	0.76	$299.84 million	$3.38	10.87

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

Risk & Volatility

Sonim Technologies has a beta of 1.86, meaning that its stock price is 86% more volatile than the S&P 500. Comparatively, AllianceBernstein has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500.

Summary

AllianceBernstein beats Sonim Technologies on 11 of the 13 factors compared between the two stocks.

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.

About AllianceBernstein

AllianceBernstein Holding L.P. is a publicly owned investment manager. The firm is a related adviser The firm manages separate client focused portfolios for its clients. The firm primarily invests in common and preferred stocks, warrants and convertible securities, government and corporate fxed-income securities, commodities, currencies, real estate-related assets and infation-protected securities. The firm employs quantitative analysis along with long-term purchases, short-term purchases, trading, short sales, margin transactions, option strategies including writing covered options, uncovered options and spread strategies to make its investments. The firm obtains external research to complement its in-house research. The firm was formerly known as Alliance Capital Management Holding LP. AllianceBernstein Holding L.P. was founded in 1967 and is based in Nashville,Tennessee.