Head-To-Head Analysis: Interactive Brokers Group (NASDAQ:IBKR) vs. Sonim Technologies (NASDAQ:SONM)

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

Volatility and Risk

Sonim Technologies has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500. Comparatively, Interactive Brokers Group has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.

Valuation & Earnings

This table compares Sonim Technologies and Interactive Brokers Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sonim Technologies	$93.63 million	0.07	-$20.66 million	($8.02)	-0.54
Interactive Brokers Group	$10.42 billion	14.21	$984.00 million	$2.50	34.83

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

Profitability

This table compares Sonim Technologies and Interactive Brokers Group’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%
Interactive Brokers Group	9.94%	5.37%	0.52%

Insider and Institutional Ownership

3.3% of Sonim Technologies shares are held by institutional investors. Comparatively, 23.8% of Interactive Brokers Group shares are held by institutional investors. 4.6% of Sonim Technologies shares are held by company insiders. Comparatively, 2.8% of Interactive Brokers Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Sonim Technologies and Interactive Brokers Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sonim Technologies	1	0	0	0	1.00
Interactive Brokers Group	0	6	7	1	2.64

Interactive Brokers Group has a consensus price target of $98.90, indicating a potential upside of 13.57%. Given Interactive Brokers Group’s stronger consensus rating and higher possible upside, analysts plainly believe Interactive Brokers Group is more favorable than Sonim Technologies.

Summary

Interactive Brokers Group beats Sonim Technologies on 13 of the 15 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 Interactive Brokers Group

Interactive Brokers Group, Inc. operates as an automated electronic broker worldwide. The company engages in the execution, clearance, and settlement of trades in stocks, options, futures, foreign exchange instruments, bonds, mutual funds, exchange traded funds (ETFs), precious metals, and cryptocurrencies. It also custodies and services accounts for hedge and mutual funds, ETFs, registered investment advisors, proprietary trading groups, introducing brokers, and individual investors. In addition, the company offers custody, prime brokerage, securities, and margin lending services. It serves institutional and individual customers through electronic exchanges and market centers. The company was founded in 1977 and is headquartered in Greenwich, Connecticut.