Sono-Tek (NASDAQ:SOTK – Get Rating) and ACM Research (NASDAQ:ACMR – Get Rating) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.
Institutional & Insider Ownership
6.1% of Sono-Tek shares are owned by institutional investors. Comparatively, 64.2% of ACM Research shares are owned by institutional investors. 6.6% of Sono-Tek shares are owned by company insiders. Comparatively, 34.0% of ACM Research 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.
Get Sono-Tek alerts:Risk & Volatility
Sono-Tek has a beta of -0.25, meaning that its share price is 125% less volatile than the S&P 500. Comparatively, ACM Research has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.
Profitability
This table compares Sono-Tek and ACM Research's net margins, return on equity and return on assets.| Net Margins | Return on Equity | Return on Assets | |
| Sono-Tek | 6.88% | 7.97% | 6.05% |
| ACM Research | 11.46% | 6.76% | 4.94% |
Analyst Recommendations
This is a summary of recent ratings for Sono-Tek and ACM Research, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sono-Tek | 0 | 0 | 1 | 0 | 3.00 |
| ACM Research | 0 | 3 | 1 | 0 | 2.25 |
Sono-Tek presently has a consensus target price of $10.00, suggesting a potential upside of 74.22%. ACM Research has a consensus target price of $17.72, suggesting a potential upside of 50.83%. Given Sono-Tek's stronger consensus rating and higher probable upside, research analysts plainly believe Sono-Tek is more favorable than ACM Research.
Earnings & Valuation
This table compares Sono-Tek and ACM Research's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sono-Tek | $17.13 million | 5.27 | $2.54 million | $0.08 | 71.76 |
| ACM Research | $259.75 million | 2.46 | $37.76 million | $0.64 | 18.26 |
ACM Research has higher revenue and earnings than Sono-Tek. ACM Research is trading at a lower price-to-earnings ratio than Sono-Tek, indicating that it is currently the more affordable of the two stocks.
Summary
ACM Research beats Sono-Tek on 7 of the 13 factors compared between the two stocks.
About Sono-Tek
(Get Rating)
Sono-Tek Corp. engages in the design and manufacture of ultrasonic coating systems. The firm also provides patented nozzles and generators for manufacturers equipment. Its products categories include electronics, energy, medical, glass, food, textiles, nanotechnology, and industrial. The company was founded by Harvey L. Berger on March 21, 1975 and is headquartered in Milton, NY.
About ACM Research
(Get Rating)
ACM Research, Inc., together with its subsidiaries, develops, manufactures, and sells single-wafer wet cleaning equipment for enhancing the manufacturing process and yield for integrated chips worldwide. It offers space alternated phase shift technology for flat and patterned wafer surfaces, which employs alternating phases of megasonic waves to deliver megasonic energy in a uniform manner on a microscopic level; timely energized bubble oscillation technology for patterned wafer surfaces at advanced process nodes, which provides cleaning for 2D and 3D patterned wafers; Tahoe technology for delivering cleaning performance using less sulfuric acid and hydrogen peroxide; and electro-chemical plating technology for advanced metal plating. The company markets and sells its products under the Ultra C brand name through direct sales force and third-party representatives. ACM Research, Inc. was incorporated in 1998 and is headquartered in Fremont, California.
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