Critical Comparison: Sono-Tek (NASDAQ:SOTK) versus Weichai Power (OTCMKTS:WEICY)

Sono-Tek (NASDAQ:SOTK) and Weichai Power (OTCMKTS:WEICY) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Insider and Institutional Ownership

47.9% of Sono-Tek shares are held by institutional investors. Comparatively, 0.0% of Weichai Power shares are held by institutional investors. 5.6% of Sono-Tek shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Sono-Tek has a beta of -0.03, suggesting that its stock price is 103% less volatile than the S&P 500. Comparatively, Weichai Power has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.

Profitability

This table compares Sono-Tek and Weichai Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sono-Tek	9.62%	10.55%	8.30%
Weichai Power	N/A	N/A	N/A

Earnings & Valuation

This table compares Sono-Tek and Weichai Power”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sono-Tek	$20.91 million	3.89	$1.81 million	$0.13	39.77
Weichai Power	$31.55 billion	N/A	$1.43 billion	N/A	N/A

Weichai Power has higher revenue and earnings than Sono-Tek.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Sono-Tek and Weichai Power, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sono-Tek	0	1	1	0	2.50
Weichai Power	0	0	0	0	0.00

Sono-Tek presently has a consensus price target of $8.50, indicating a potential upside of 64.41%. Given Sono-Tek’s stronger consensus rating and higher possible upside, equities analysts plainly believe Sono-Tek is more favorable than Weichai Power.

Summary

Sono-Tek beats Weichai Power on 8 of the 11 factors compared between the two stocks.

About Sono-Tek

Sono-Tek Corporation designs and manufactures ultrasonic coating systems for applying on parts and components for the microelectronics/electronics, alternative energy, medical, industrial, and research and development/other markets worldwide. The company also designs and manufactures custom-engineered ultrasonic coating systems; and provides nozzles and generators for manufacturers' equipment. Its products include integrated multi-axis coating systems, integrated coating systems, fluxing systems, OEM systems, and other related systems. In addition, the company provides surface coating solutions and application consulting services. It markets and distributes its products through direct sales personnel, select independent distributors, and sales representatives. The company was incorporated in 1975 and is based in Milton, New York.

About Weichai Power

Weichai Power Co., Ltd. engages in the manufacture and sale of diesel engines, automobiles, and other automobile components in China and internationally. It operates through Engines, Automobiles and Automobile Components, Agricultural Equipment, and Intelligent Logistics segments. The company offers engines of trucks, buses, construction and agricultural machinery, and industrial equipment; gearboxes, including transmission, PTO, and auto transmission products; axles for trucks, bus, and construction machinery; hydraulic components, pumps, valves, gears, motors, and powertrain; commercial vehicles and auto parts; and industrial trucks and services. It also provides new energy products, which include electric direct drive system, electric gearbox power system, electric drive axle system, hybrid power system, power battery, and range-extender system; after-market products, including parts, oil, and other products; fuel cell systems and parts and components; agricultural equipment, machineries, vehicles, and related parts; heavy-duty vehicles; and automotive electronics and parts and components; and forklift trucks production, warehousing technology, and supply chain solutions. The company offers its products under the Weichai Power Engine, Fast Gear, Hande Axle, Shacman Heavy Truck, and Linder Hydraulics brands. Weichai Power Co., Ltd. was incorporated in 2002 and is headquartered in Weifang, the People's Republic of China.