Financial Analysis: Sonendo (SONX) and Its Competitors

Sonendo (NYSE:SONX) is one of 14 publicly-traded companies in the “Dental equipment & supplies” industry, but how does it contrast to its competitors? We will compare Sonendo to similar companies based on the strength of its earnings, analyst recommendations, profitability, dividends, valuation, institutional ownership and risk.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Sonendo and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sonendo	0	3	1	0	2.25
Sonendo Competitors	126	236	296	0	2.26

Sonendo currently has a consensus price target of $1.88, indicating a potential upside of 2,020.32%. As a group, “Dental equipment & supplies” companies have a potential upside of 145.54%. Given Sonendo’s higher possible upside, research analysts plainly believe Sonendo is more favorable than its competitors.

Insider and Institutional Ownership

28.7% of Sonendo shares are held by institutional investors. Comparatively, 38.9% of shares of all “Dental equipment & supplies” companies are held by institutional investors. 6.4% of Sonendo shares are held by insiders. Comparatively, 23.3% of shares of all “Dental equipment & supplies” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Sonendo and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sonendo	-138.88%	-121.92%	-58.04%
Sonendo Competitors	-38.90%	-107.47%	-16.13%

Risk and Volatility

Sonendo has a beta of 1.65, suggesting that its share price is 65% more volatile than the S&P 500. Comparatively, Sonendo’s competitors have a beta of 1.13, suggesting that their average share price is 13% more volatile than the S&P 500.

Earnings and Valuation

This table compares Sonendo and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sonendo	$43.87 million	-$60.92 million	-0.14
Sonendo Competitors	$1.43 billion	-$41.50 million	-1.77

Sonendo’s competitors have higher revenue and earnings than Sonendo. Sonendo is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Sonendo competitors beat Sonendo on 9 of the 12 factors compared.

Sonendo Company Profile

Sonendo, Inc., a commercial-stage medical technology company, develops, manufactures, and commercializes devices for root canal therapy in the United States and Canada. It provides GentleWave, a tooth decay treatment, a technology platform designed for cleaning and disinfecting the microscopic spaces within teeth without the need to remove tooth structure. The company also offers SoundSeal, a material used to build and create a sealing platform on the top of the crown; and Sonendo-branded liquid solution of ethylenediaminetetraacetic acid EDTA that is used to help debride and disinfect the root canal system. In addition, it provides The Digital Office, a practice management software to enable an integrated digital office for dental practitioners. The company was formerly known as Dentatek Corporation and changed its name to Sonendo, Inc. in March 2011. The company was incorporated in 2006 and is headquartered in Laguna Hills, California.