Comparing Sonim Technologies (NASDAQ:SONM) & Charles Schwab (NYSE:SCHW)

Charles Schwab (NYSE:SCHW) and Sonim Technologies (NASDAQ:SONM) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Profitability

This table compares Charles Schwab and Sonim Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Charles Schwab	38.79%	24.53%	2.14%
Sonim Technologies	N/A	N/A	-40.82%

Risk and Volatility

Charles Schwab has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, Sonim Technologies has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Charles Schwab and Sonim Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Charles Schwab	1	2	16	2	2.90
Sonim Technologies	1	0	0	0	1.00

Charles Schwab currently has a consensus target price of $121.17, suggesting a potential upside of 10.73%. Given Charles Schwab’s stronger consensus rating and higher possible upside, analysts clearly believe Charles Schwab is more favorable than Sonim Technologies.

Valuation and Earnings

This table compares Charles Schwab 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
Charles Schwab	$26.02 billion	7.27	$8.85 billion	$5.50	19.90
Sonim Technologies	$93.63 million	0.05	-$20.66 million	($8.02)	-0.40

Charles Schwab has higher revenue and earnings than Sonim Technologies. Sonim Technologies is trading at a lower price-to-earnings ratio than Charles Schwab, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

84.4% of Charles Schwab shares are owned by institutional investors. Comparatively, 3.3% of Sonim Technologies shares are owned by institutional investors. 6.3% of Charles Schwab shares are owned by company insiders. Comparatively, 4.6% of Sonim Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Charles Schwab beats Sonim Technologies on 14 of the 15 factors compared between the two stocks.

About Charles Schwab

The Charles Schwab Corporation, together with its subsidiaries, operates as a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services in the United States and internationally. The company operates in two segments, Investor Services and Advisor Services. It offers brokerage accounts with equity and fixed income trading, margin lending, options trading, futures and forex trading, and cash management capabilities, including certificates of deposit; third-party mutual funds through the Mutual Fund Marketplace and Mutual Fund OneSource service, as well as mutual fund trading and clearing services to broker-dealers; exchange-traded funds; advisory solutions for managed portfolios, separately managed accounts, customized personal advice for tailored portfolios, specialized planning, and full-time portfolio management; banking products comprising checking and savings accounts, first lien residential real estate mortgage loans, home equity lines of credit, and pledged asset lines; and trust custody services, personal trust reporting services, and administrative trustee services. It also provides digital retirement calculators; integrated web-, mobile-, and software-based trading platforms, real-time market data, options trading, premium research, and multi-channel access; self-service education and support tools; online research and analysis tools; equity compensation plan sponsors full-service recordkeeping for stock plans, stock options, restricted stock, performance shares, and stock appreciation rights; retirement plan services; mutual fund clearing services; and advisor services, including interactive tools and educational content. The Company operates through branch offices. The Charles Schwab Corporation was incorporated in 1971 and is headquartered in Westlake, Texas.

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.