Horizon Technology Finance (NASDAQ:HRZN – Get Free Report) and Sonim Technologies (NASDAQ:SONM – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, analyst recommendations, profitability, institutional ownership and valuation.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Horizon Technology Finance and Sonim Technologies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Horizon Technology Finance | 1 | 5 | 1 | 0 | 2.00 |
| Sonim Technologies | 1 | 0 | 0 | 0 | 1.00 |
Horizon Technology Finance presently has a consensus target price of $5.00, indicating a potential upside of 13.77%. Given Horizon Technology Finance’s stronger consensus rating and higher possible upside, research analysts clearly believe Horizon Technology Finance is more favorable than Sonim Technologies.
Institutional and Insider Ownership
4.9% of Horizon Technology Finance shares are held by institutional investors. Comparatively, 3.3% of Sonim Technologies shares are held by institutional investors. 0.3% of Horizon Technology Finance shares are held by insiders. Comparatively, 4.6% of Sonim Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Volatility & Risk
Horizon Technology Finance has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, Sonim Technologies has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500.
Valuation & Earnings
This table compares Horizon Technology Finance and Sonim Technologies”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Horizon Technology Finance | $20.51 million | 14.36 | -$2.66 million | $0.36 | 12.21 |
| Sonim Technologies | $93.63 million | 0.06 | -$20.66 million | ($8.02) | -0.45 |
Horizon Technology Finance has higher earnings, but lower revenue than Sonim Technologies. Sonim Technologies is trading at a lower price-to-earnings ratio than Horizon Technology Finance, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Horizon Technology Finance and Sonim Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Horizon Technology Finance | 5.27% | 11.15% | 4.84% |
| Sonim Technologies | N/A | N/A | -40.82% |
Summary
Horizon Technology Finance beats Sonim Technologies on 11 of the 14 factors compared between the two stocks.
About Horizon Technology Finance
Horizon Technology Finance Corporation is a business development company specializing in lending and and investing in development-stage investments. It focuses on making secured debt and venture lending investments to venture capital backed companies in the technology, life science, healthcare information and services, cleantech and sustainability industries. It seeks to invest in companies in the United States.
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.
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