Analyzing Futu (NASDAQ:FUTU) & Sonim Technologies (NASDAQ:SONM)

Futu (NASDAQ:FUTU) and Sonim Technologies (NASDAQ:SONM) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.

Volatility & Risk

Futu has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500. Comparatively, Sonim Technologies has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500.

Earnings and Valuation

This table compares Futu and Sonim Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Futu	$2.94 billion	5.41	$1.46 billion	$10.10	11.21
Sonim Technologies	$93.63 million	0.06	-$20.66 million	($8.02)	-0.50

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

Analyst Recommendations

This is a summary of current ratings for Futu and Sonim Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Futu	0	4	2	0	2.33
Sonim Technologies	1	0	0	0	1.00

Futu presently has a consensus target price of $139.91, suggesting a potential upside of 23.58%. Given Futu’s stronger consensus rating and higher possible upside, equities analysts clearly believe Futu is more favorable than Sonim Technologies.

Institutional & Insider Ownership

3.3% of Sonim Technologies shares are held by institutional investors. 35.2% of Futu shares are held by company insiders. Comparatively, 4.6% of Sonim Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Futu	42.95%	28.20%	4.40%
Sonim Technologies	N/A	N/A	-40.82%

Summary

Futu beats Sonim Technologies on 12 of the 14 factors compared between the two stocks.

About Futu

Futu Holdings Limited provides digitalized securities brokerage and wealth management product distribution service in Hong Kong and internationally. It offers online financial services, including securities and derivative trades brokerage, margin financing and fund distribution services through its Futubull and Moomoo digital platforms. The company also provides financial information and online community services; online wealth management services under the Money Plus brand name through its Futubull and moomoo platforms, which provides its client access to mutual funds, private funds, bonds, structured products, and other wealth management products; market data and information services; and NiuNiu Community, which serves as an open forum for users and clients to share insights, ask questions, and exchange ideas. Futu Holdings Limited was founded in 2007 and is headquartered in Sheung Wan, Hong Kong.

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.