Financial Contrast: Sono-Tek (NASDAQ:SOTK) and Dover (NYSE:DOV)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dover	$8.42 billion	3.08	$1.09 billion	$8.30	23.18
Sono-Tek	$21.44 million	5.26	$1.81 million	$0.13	55.19

Dover has higher revenue and earnings than Sono-Tek. Dover 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

Dover has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, Sono-Tek has a beta of 0.07, indicating that its share price is 93% less volatile than the S&P 500.

Institutional & Insider Ownership

84.5% of Dover shares are held by institutional investors. Comparatively, 47.9% of Sono-Tek shares are held by institutional investors. 1.1% of Dover shares are held by company insiders. Comparatively, 5.6% of Sono-Tek shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dover	13.48%	18.32%	10.26%
Sono-Tek	9.62%	10.55%	8.30%

Analyst Ratings

This is a breakdown of current recommendations for Dover and Sono-Tek, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dover	0	5	10	0	2.67
Sono-Tek	0	1	1	0	2.50

Dover currently has a consensus target price of $238.21, indicating a potential upside of 23.81%. Sono-Tek has a consensus target price of $8.50, indicating a potential upside of 18.47%. Given Dover’s stronger consensus rating and higher probable upside, research analysts clearly believe Dover is more favorable than Sono-Tek.

Summary

Dover beats Sono-Tek on 11 of the 14 factors compared between the two stocks.

About Dover

Dover Corporation provides equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services worldwide. The company's Engineered Products segment provides various equipment, component, software, solution, and services that are used in vehicle aftermarket, waste handling, industrial automation, aerospace and defense, industrial winch and hoist, and fluid dispensing end-market. This segment offers manual and power clamp, rotary and linear mechanical indexer, conveyor, pick and place unit, glove port, and manipulator, as well as end-of-arm robotic gripper, slide, and end effector; winches, hoists, bearings, drives, and electric monitoring system; and radio frequency and microwave filters and switches, and signal intelligence solutions. Its Clean Energy & Fueling segment offers component, equipment, and software and service solution enabling safe storage and transport of fuel, cryogenic gases, and hazardous fluids, as well as operation of retail fueling and vehicle wash establishment. The company's Imaging & Identification segment provides precision marking and coding, product traceability equipment, brand protection, and digital textile printing equipment and solution, as well as related consumable, software, and service to packaged and consumer goods, pharmaceutical, manufacturing, fashion and apparel, and other end-market. Its Pumps & Process Solutions segment manufactures specialty pump, connector, flow meter, fluid connecting solution, plastics and polymer processing equipment, and engineered components for rotating and reciprocating machines. The company's Climate & Sustainability Technologies segment manufactures refrigeration system, refrigeration display case, commercial glass refrigerator and freezer door, and brazed plate heat exchanger for industrial heating and cooling, and residential climate control applications. The company was incorporated in 1947 and is headquartered in Downers Grove, Illinois.

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.