Analyzing Avaya (NYSE:AVYA) & Sonim Technologies (NYSE:SONM)

Avaya (NYSE:AVYA) and Sonim Technologies (NASDAQ:SONM) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Avaya and Sonim Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avaya 0 4 3 0 2.43
Sonim Technologies 0 0 4 0 3.00

Avaya presently has a consensus target price of $19.50, indicating a potential upside of 73.64%. Sonim Technologies has a consensus target price of $18.00, indicating a potential upside of 34.43%. Given Avaya’s higher probable upside, equities analysts plainly believe Avaya is more favorable than Sonim Technologies.

Earnings and Valuation

This table compares Avaya and Sonim Technologies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Avaya $2.85 billion 0.44 $3.26 billion N/A N/A
Sonim Technologies N/A N/A N/A N/A N/A

Avaya has higher revenue and earnings than Sonim Technologies.

Profitability

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

Net Margins Return on Equity Return on Assets
Avaya 6.12% 15.77% 4.09%
Sonim Technologies N/A N/A N/A

Institutional & Insider Ownership

100.0% of Avaya shares are held by institutional investors. 0.7% of Avaya shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Avaya beats Sonim Technologies on 7 of the 9 factors compared between the two stocks.

About Avaya

Avaya Holdings Corp., through its subsidiaries, provides digital communications products, solutions, and services for businesses worldwide. The company operates through two segments, Products & Solutions, and Services. The Products & Solutions segment offers unified communications and contact center platforms, applications, and devices. It also provides an open development platform for customers and third parties to create custom applications and automated workflows for their needs; and contact center solutions that enable customers to build a customized portfolio of applications driving customer engagement and customer value. This segments communications solutions include voice, email, chat, social media, video, and performance management. The Services segment provides global support services, enterprise cloud and managed services, and professional services. The company also delivers cloud business communications services and solutions to connect with customers. Avaya Holdings Corp. sells directly through its sales force, as well as indirectly through its network of channel partners, including distributors, service providers, dealers, value-added resellers, system integrators, and business partners. The company is based in Santa Clara, California.

About Sonim Technologies

Sonim Technologies, Inc. provides ruggedized mobile phones and accessories for task workers. It offers ruggedized mobile phones, such as Sonim XP8, Sonim XP5s, and Sonim XP3 based on the Android platform that are capable of attaching to public and private wireless networks; industrial-grade accessories, including remote speaker microphones, multi-bay charging accessories, and in-vehicle hands-free voice communications solutions; and cloud-based software and application services. Sonim Technologies, Inc. sells its mobile phones and accessories primarily to wireless carriers in the United States and Canada. 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 Mateo, California.

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