Sono-Tek (NASDAQ:SOTK – Get Free Report) and Franklin Electric (NASDAQ:FELE – Get Free Report) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.
Institutional & Insider Ownership
47.9% of Sono-Tek shares are held by institutional investors. Comparatively, 80.0% of Franklin Electric shares are held by institutional investors. 5.6% of Sono-Tek shares are held by company insiders. Comparatively, 2.9% of Franklin Electric shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Sono-Tek and Franklin Electric”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sono-Tek | $20.91 million | 3.39 | $1.81 million | $0.13 | 34.65 |
| Franklin Electric | $2.21 billion | 1.92 | $147.09 million | $3.47 | 27.71 |
Franklin Electric has higher revenue and earnings than Sono-Tek. Franklin Electric is trading at a lower price-to-earnings ratio than Sono-Tek, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Sono-Tek has a beta of -0.02, meaning that its stock price is 102% less volatile than the S&P 500. Comparatively, Franklin Electric has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for Sono-Tek and Franklin Electric, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sono-Tek | 0 | 2 | 0 | 0 | 2.00 |
| Franklin Electric | 0 | 3 | 0 | 0 | 2.00 |
Sono-Tek currently has a consensus target price of $8.50, indicating a potential upside of 88.68%. Franklin Electric has a consensus target price of $114.50, indicating a potential upside of 19.07%. Given Sono-Tek’s higher possible upside, analysts plainly believe Sono-Tek is more favorable than Franklin Electric.
Profitability
This table compares Sono-Tek and Franklin Electric’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sono-Tek | 9.62% | 10.55% | 8.30% |
| Franklin Electric | 7.06% | 15.18% | 10.13% |
Summary
Franklin Electric beats Sono-Tek on 7 of the 12 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 Franklin Electric
Franklin Electric Co., Inc., together with its subsidiaries, designs, manufactures, and distributes water and fuel pumping systems worldwide. The company operates through Water Systems, Fueling Systems, and Distribution segments. The Water Systems segment offers submersible motors, drives, pumps, electronic controls, water treatment systems, monitoring devices, and related parts and equipment. Its motors and pumps are used principally for pumping clean water and wastewater in various residential, agricultural, municipal, and industrial applications; and manufactures electronic drives and controls that are used in motors for controlling functionality, as well as provides protection from various hazards, such as electrical surges, over-heating, and dry wells or tanks. The Fueling Systems segment provides pumps, pipes, sumps, fittings, vapor recovery components, electronic controls, monitoring devices, and related parts and equipment primarily for use in fueling system applications. This segment serves other energy markets, such as power reliability systems, as well as includes electronic devices for online monitoring of the power utility, hydroelectric, and telecommunication and data center infrastructure. The Distribution segment sells to and provides presale support and specifications to the installing contractors. It sells products produced by the Water Systems segment. The company sells its products to wholesale and retail distributors, specialty distributors, original equipment manufacturers, industrial and petroleum equipment distributors, and oil and utility companies through its employee sales force and independent manufacturing representatives. Franklin Electric Co., Inc. was founded in 1944 and is headquartered in Fort Wayne, Indiana.
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