Fanuc (OTCMKTS:FANUY) vs. Sono-Tek (NASDAQ:SOTK) Financial Analysis

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

Earnings & Valuation

This table compares Sono-Tek and Fanuc”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sono-Tek	$20.91 million	3.24	$1.81 million	$0.12	35.83
Fanuc	$5.70 billion	5.90	$1.10 billion	$0.68	25.18

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sono-Tek	9.32%	9.95%	7.81%
Fanuc	21.53%	10.47%	9.42%

Volatility and Risk

Sono-Tek has a beta of -0.1, suggesting that its stock price is 110% less volatile than the S&P 500. Comparatively, Fanuc has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Sono-Tek and Fanuc, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sono-Tek	0	2	1	0	2.33
Fanuc	0	2	0	1	2.67

Sono-Tek presently has a consensus price target of $7.75, indicating a potential upside of 80.23%. Given Sono-Tek’s higher possible upside, equities research analysts clearly believe Sono-Tek is more favorable than Fanuc.

Insider & Institutional Ownership

47.9% of Sono-Tek shares are owned by institutional investors. Comparatively, 1.5% of Fanuc shares are owned by institutional investors. 5.6% of Sono-Tek shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Fanuc beats Sono-Tek on 10 of the 15 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 Fanuc

FANUC Corporation provides factory automation products in Japan, the Americas, Europe, China, the rest of Asia, and internationally. The company offers CNC series products, servo motors, lasers, robots, compact machining centers, electric injection molding machines, wire electrical discharge machines, and ultra-precision machines. It also provides FANUC intelligent edge link and drive system, an open platform for the manufacturing industry. FANUC Corporation was incorporated in 1950 and is headquartered in Yamanashi, Japan.