Contrasting NetGear (NASDAQ:NTGR) and Sonim Technologies (NASDAQ:SONM)

NetGear (NASDAQ:NTGR) and Sonim Technologies (NASDAQ:SONM) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, earnings, institutional ownership, dividends, valuation, analyst recommendations and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
NetGear 1.28% 7.48% 4.75%
Sonim Technologies N/A N/A N/A

Valuation and Earnings

This table compares NetGear and Sonim Technologies’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NetGear $1.06 billion 0.76 -$9.16 million $1.74 15.29
Sonim Technologies N/A N/A N/A N/A N/A

Sonim Technologies has lower revenue, but higher earnings than NetGear.

Insider and Institutional Ownership

99.9% of NetGear shares are held by institutional investors. Comparatively, 39.9% of Sonim Technologies shares are held by institutional investors. 5.6% of NetGear shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for NetGear and Sonim Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NetGear 0 1 2 0 2.67
Sonim Technologies 0 1 5 0 2.83

NetGear presently has a consensus target price of $39.00, indicating a potential upside of 46.62%. Sonim Technologies has a consensus target price of $12.17, indicating a potential upside of 232.42%. Given Sonim Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Sonim Technologies is more favorable than NetGear.

Summary

NetGear beats Sonim Technologies on 6 of the 9 factors compared between the two stocks.

NetGear Company Profile

NETGEAR, Inc. designs, develops, and markets networking and Internet connected products for consumers, businesses, and service providers. It operates in two segments, Connected Home, and Small and Medium Business. The company offers smart home/connected home/broadband access products, such as broadband modems, WiFi gateways, WiFi hotspots, WiFi routers and home WiFi systems, WiFi range extenders, Powerline adapters and bridges, WiFi network adapters, and digital canvasses; and value added service offerings, including technical support, parental controls, and cybersecurity protection. It also provides Ethernet switches, wireless controllers and access points, unified storage products, and Internet security appliances for small and medium-sized businesses. The company markets and sells its products through traditional retailers, online retailers, wholesale distributors, direct market resellers, value-added resellers, and broadband service providers in the Americas, Europe, the Middle-East, Africa, and the Asia Pacific. NETGEAR, Inc. was founded in 1996 and is headquartered in San Jose, California.

Sonim Technologies Company Profile

Sonim Technologies, Inc. provides ruggedized mobile phones and accessories for task workers. It offers ruggedized mobile phones, such as Sonim XP8, Sonim XP5s, and Sonim XP3 based on the Android platform that are capable of attaching to public and private wireless networks; industrial-grade accessories, including remote speaker microphones, multi-bay charging accessories, and in-vehicle hands-free voice communications solutions; and cloud-based software and application services. Sonim Technologies, Inc. sells its mobile phones and accessories primarily to wireless carriers in the United States and Canada. 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 Mateo, California.

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