Sono-Tek (NASDAQ:SOTK – Get Free Report) and Atomera (NASDAQ:ATOM – Get Free Report) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.
Institutional and Insider Ownership
47.9% of Sono-Tek shares are owned by institutional investors. Comparatively, 30.8% of Atomera shares are owned by institutional investors. 5.5% of Sono-Tek shares are owned by insiders. Comparatively, 8.1% of Atomera 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.
Analyst Ratings
This is a summary of recent recommendations for Sono-Tek and Atomera, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sono-Tek | 0 | 2 | 0 | 0 | 2.00 |
| Atomera | 1 | 0 | 0 | 0 | 1.00 |
Valuation and Earnings
This table compares Sono-Tek and Atomera”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sono-Tek | $20.91 million | 3.97 | $1.81 million | $0.11 | 48.09 |
| Atomera | $60,000.00 | 5,808.00 | -$20.17 million | ($0.65) | -13.85 |
Sono-Tek has higher revenue and earnings than Atomera. Atomera 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 -0.03, suggesting that its share price is 103% less volatile than the S&P 500. Comparatively, Atomera has a beta of 2.04, suggesting that its share price is 104% more volatile than the S&P 500.
Profitability
This table compares Sono-Tek and Atomera’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sono-Tek | 8.64% | 9.52% | 7.45% |
| Atomera | N/A | -84.79% | -75.99% |
Summary
Sono-Tek beats Atomera on 10 of the 13 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 Atomera
Atomera Incorporated engages in the developing, commercializing, and licensing proprietary processes and technologies for the semiconductor industry in North America and the Asia Pacific. The company's lead technology is the Mears Silicon Technology, a thin film of reengineered silicon that can be applied as a transistor channel enhancement to CMOS-type transistors. Its customers include foundries, integrated device manufacturers, fabless semiconductor manufacturers, original equipment manufacturers, and electronic design automation companies. The company was formerly known as Mears Technologies, Inc. and changed its name to Atomera Incorporated in January 2016. Atomera Incorporated was founded in 2001 and is headquartered in Los Gatos, California.
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