Critical Contrast: WisdomTree (NYSE:WT) and Sonim Technologies (NASDAQ:SONM)

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

Risk and Volatility

Sonim Technologies has a beta of 1.86, indicating that its share price is 86% more volatile than the S&P 500. Comparatively, WisdomTree has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500.

Institutional and Insider Ownership

3.3% of Sonim Technologies shares are held by institutional investors. Comparatively, 78.6% of WisdomTree shares are held by institutional investors. 4.6% of Sonim Technologies shares are held by insiders. Comparatively, 10.1% of WisdomTree shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sonim Technologies	1	0	0	0	1.00
WisdomTree	0	3	4	0	2.57

WisdomTree has a consensus target price of $23.66, suggesting a potential upside of 2.46%. Given WisdomTree’s stronger consensus rating and higher probable upside, analysts clearly believe WisdomTree is more favorable than Sonim Technologies.

Profitability

This table compares Sonim Technologies and WisdomTree’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%
WisdomTree	13.27%	39.12%	10.29%

Earnings & Valuation

This table compares Sonim Technologies and WisdomTree”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sonim Technologies	$93.63 million	0.06	-$20.66 million	($8.02)	-0.43
WisdomTree	$493.75 million	7.09	$109.13 million	$0.52	44.41

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

Summary

WisdomTree beats Sonim Technologies on 13 of the 14 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 WisdomTree

WisdomTree, Inc., through its subsidiaries, operates as an exchange-traded funds (ETFs) sponsor and asset manager. It offers ETFs in equities, currency, fixed income, and alternatives asset classes. The company also licenses its indexes to third parties for proprietary products, as well as offers a platform to promote the use of WisdomTree ETFs in 401(k) plans. It develops index using its fundamentally weighted index methodology. In addition, the company provides investment advisory services. The company was founded in 1985 and is based in New York, New York.