Sonim Technologies (NASDAQ:SONM – Get Free Report) and Horizon Technology Finance (NASDAQ:HRZN – Get Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, risk, earnings, profitability, valuation, dividends and institutional ownership.
Analyst Ratings
This is a summary of current ratings and target prices for Sonim Technologies and Horizon Technology Finance, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sonim Technologies | 1 | 0 | 0 | 0 | 1.00 |
| Horizon Technology Finance | 1 | 5 | 1 | 0 | 2.00 |
Horizon Technology Finance has a consensus price target of $5.00, indicating a potential upside of 25.00%. Given Horizon Technology Finance’s stronger consensus rating and higher probable upside, analysts plainly believe Horizon Technology Finance is more favorable than Sonim Technologies.
Valuation and Earnings
This table compares Sonim Technologies and Horizon Technology Finance”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sonim Technologies | $93.63 million | 0.05 | -$20.66 million | ($8.02) | -0.40 |
| Horizon Technology Finance | $96.02 million | 2.79 | -$2.66 million | $0.36 | 11.11 |
Horizon Technology Finance has higher revenue and earnings 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 Sonim Technologies and Horizon Technology Finance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sonim Technologies | N/A | N/A | -40.82% |
| Horizon Technology Finance | 5.27% | 11.15% | 4.84% |
Institutional and Insider Ownership
3.3% of Sonim Technologies shares are held by institutional investors. Comparatively, 4.9% of Horizon Technology Finance shares are held by institutional investors. 4.6% of Sonim Technologies shares are held by company insiders. Comparatively, 0.3% of Horizon Technology Finance shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Risk & Volatility
Sonim Technologies has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500. Comparatively, Horizon Technology Finance has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.
Summary
Horizon Technology Finance beats Sonim Technologies on 11 of the 13 factors compared between the two stocks.
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.
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.
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