Critical Analysis: Sonim Technologies (NASDAQ:SONM) vs. Nokia (NYSE:NOK)

Nokia (NYSE:NOK) and Sonim Technologies (NASDAQ:SONM) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nokia	$20.80 billion	1.06	$1.38 billion	$0.20	20.51
Sonim Technologies	$58.30 million	0.18	-$33.65 million	($2.93)	-0.20

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nokia	5.30%	8.36%	4.49%
Sonim Technologies	-52.00%	-465.12%	-70.96%

Risk and Volatility

Nokia has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Sonim Technologies has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Nokia and Sonim Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nokia	1	0	4	0	2.60
Sonim Technologies	0	0	0	0	0.00

Nokia currently has a consensus price target of $5.7750, suggesting a potential upside of 40.78%. Given Nokia’s stronger consensus rating and higher possible upside, research analysts plainly believe Nokia is more favorable than Sonim Technologies.

Institutional & Insider Ownership

5.3% of Nokia shares are held by institutional investors. Comparatively, 3.3% of Sonim Technologies shares are held by institutional investors. 49.8% of Sonim Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Nokia beats Sonim Technologies on 12 of the 14 factors compared between the two stocks.

About Nokia

Nokia Oyj provides mobile, fixed, and cloud network solutions worldwide. The company operates through four segments: Network Infrastructure, Mobile Networks, Cloud and Network Services, and Nokia Technologies. The company provides fixed networking solutions, such as fiber and copper-based access infrastructure, in-home Wi-Fi solutions, and cloud and virtualization services; IP networking solutions, including IP access, aggregation, and edge and core routing for residential, mobile, enterprise and cloud applications; optical networks solutions that provides optical transport networks for metro, regional, and long-haul applications, and subsea applications; and submarine networks for undersea cable transmission. It serves its products and services to communications service providers, webscales and hyperscalers, digital industries, and government. The company also offers mobile technology products and services for radio access networks and microwave radio links for transport networks, network management solutions, as well as network planning, optimization, network deployment, and technical support services. In addition, it offers cloud and network services, including core network solutions, such as voice and packet core; business applications, such as security, automation, and monetization; cloud and cognitive services; and enterprise solutions, including private wireless and industrial automation. Further, the company licenses intellectual property, including patents, technologies, and the Nokia brand. Nokia Oyj was founded in 1865 and is headquartered in Espoo, Finland.

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.