Contrasting Aviat Networks (NASDAQ:AVNW) and Sonim Technologies (NASDAQ:SONM)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sonim Technologies	-56.48%	-1,627.75%	-80.88%
Aviat Networks	0.31%	5.77%	2.40%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Sonim Technologies and Aviat Networks, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sonim Technologies	1	0	0	0	1.00
Aviat Networks	1	0	3	0	2.50

Aviat Networks has a consensus target price of $33.00, suggesting a potential upside of 44.67%. Given Aviat Networks’ stronger consensus rating and higher possible upside, analysts clearly believe Aviat Networks is more favorable than Sonim Technologies.

Volatility & Risk

Sonim Technologies has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500. Comparatively, Aviat Networks has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sonim Technologies	$58.30 million	0.20	-$33.65 million	($13.39)	-0.85
Aviat Networks	$453.50 million	0.64	$1.34 million	$1.03	22.15

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

Insider and Institutional Ownership

3.3% of Sonim Technologies shares are held by institutional investors. Comparatively, 78.6% of Aviat Networks shares are held by institutional investors. 4.6% of Sonim Technologies shares are held by insiders. Comparatively, 5.3% of Aviat Networks shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Aviat Networks 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 Aviat Networks

Aviat Networks, Inc. provides microwave networking and wireless access networking solutions in North America, Africa, the Middle East, Europe, Latin America, and the Asia Pacific. The company offers outdoor, indoor, and split-mount radios; microwave routers, switches, and trunking; and private LTE, virtual fiber, and element management products; and hosted software products, such as aviat design, frequency assurance software, and health assurance software. It also provides project services, which includes design and engineering, site and path surveys, assembly and integrations, project management, and install and commission; and managed services, such as network and interface monitoring, network health, onsite maintenance, and remote upgrades. In addition, the company offers support services, including extended warranty, warranty plus, provision support, and license key management, as well as instructor and virtual instructor led training, e-learning and certification services. It serves communications service providers and private network operators, including federal, state and local government agencies, transportation agencies, energy and utility companies, public safety agencies, and broadcast network operators. The company markets its products through a direct sales, service, and support organization; indirect sales channels comprising dealers, resellers, and sales representatives; and through online. Aviat Networks, Inc. company was incorporated in 2006 and is headquartered in Austin, Texas.