Socket Mobile (NASDAQ:SCKT – Get Free Report) and Cemtrex (NASDAQ:CETX – Get Free Report) are both small-cap technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.
Insider and Institutional Ownership
3.8% of Socket Mobile shares are held by institutional investors. Comparatively, 2.0% of Cemtrex shares are held by institutional investors. 54.8% of Socket Mobile shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings for Socket Mobile and Cemtrex, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Socket Mobile | 1 | 0 | 0 | 0 | 1.00 |
| Cemtrex | 1 | 0 | 0 | 0 | 1.00 |
Risk & Volatility
Socket Mobile has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, Cemtrex has a beta of 2.22, suggesting that its stock price is 122% more volatile than the S&P 500.
Valuation & Earnings
This table compares Socket Mobile and Cemtrex”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Socket Mobile | $15.08 million | 0.29 | -$14.38 million | ($1.85) | -0.29 |
| Cemtrex | $76.49 million | 0.04 | -$28.11 million | ($81.19) | -0.02 |
Socket Mobile has higher earnings, but lower revenue than Cemtrex. Socket Mobile is trading at a lower price-to-earnings ratio than Cemtrex, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Socket Mobile and Cemtrex’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Socket Mobile | -107.50% | -229.41% | -89.45% |
| Cemtrex | -38.59% | -129.15% | -45.98% |
About Socket Mobile
Socket Mobile, Inc. provides data capture and delivery solutions in the United States, Europe, Asia, and internationally. Its products and solutions are integrated into mobile applications for applications in the areas of point of sale, commercial services, asset tracking, manufacturing and quality control processes, transportation and logistics, event management, medical, and education. The company also offers cordless data capture devices that connect through Bluetooth and work with applications running on smartphones, mobile computers, and tablets; SocketScan and DuraScan 700 series, companion scanners and 800 series, attachable scanners, and wearables; and DuraSled, a barcode scanning sled that protects phones from impact damage and provides charging solutions. In addition, it offers D600, a handheld model to reads and writes various types of electronic SmartTags and transfers data with near-field communication (NFC); S550, a contactless membership card reader/writer; and S370 product that supports barcode scanning, and NFC reading and writing technologies. Further, the company provides SocketCam C820 and C860, which are camera-based barcode scanners; software developer kits, such as CaptureSDK that enables the App providers to modify captured data, control the placement of the barcoded or RFID data in their applications, and control the feedback to the user. It serves retail, commercial services, industrial and manufacturing, transportation and logistics, and healthcare industries through a network of distributors, online resellers, and application providers, as well as online stores. The company was formerly known as Socket Communications, Inc. and changed its name to Socket Mobile, Inc. in April 2008. Socket Mobile, Inc. was founded in 1992 and is headquartered in Fremont, California.
About Cemtrex
Cemtrex, Inc. engages in the provision of solutions in the technology industry. It operates through the following segments: Security, Industrial Services, and Cemtrex Corporate. The Security segment provides end-to-end security solutions to meet corporate, industrial, and governmental security challenges. The Industrial Services segment offers single-source expertise and services for rigging, millwrighting, in plant maintenance, equipment erection, relocation, and disassembly to diversified customers. The Cemtrex Corporate segment refers to the holding company of the other two segments. The company was founded on April 27, 1998 and is headquartered in Hauppauge, NY.
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