Socket Mobile (NASDAQ:SCKT – Get Free Report) and Cemtrex (NASDAQ:CETX – Get Free Report) are both small-cap technology companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Socket Mobile and Cemtrex, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Socket Mobile | 1 | 0 | 0 | 0 | 1.00 |
| Cemtrex | 1 | 0 | 0 | 0 | 1.00 |
Risk & Volatility
Socket Mobile has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, Cemtrex has a beta of 2.22, indicating that its share price is 122% more volatile than the S&P 500.
Institutional & Insider Ownership
3.8% of Socket Mobile shares are owned by institutional investors. Comparatively, 2.0% of Cemtrex shares are owned by institutional investors. 54.8% of Socket Mobile shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Socket Mobile and Cemtrex’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Socket Mobile | -107.50% | -229.41% | -89.45% |
| Cemtrex | -38.59% | -129.15% | -45.98% |
Earnings & Valuation
This table compares Socket Mobile and Cemtrex”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Socket Mobile | $15.08 million | 0.26 | -$14.38 million | ($1.85) | -0.26 |
| Cemtrex | $71.17 million | 0.04 | -$28.11 million | ($81.19) | -0.02 |
Socket Mobile has higher earnings, but lower revenue than Cemtrex. Socket Mobile is trading at a lower price-to-earnings ratio than Cemtrex, indicating that it is currently the more affordable of the two stocks.
Summary
Cemtrex beats Socket Mobile on 6 of the 11 factors compared between the two stocks.
About Socket Mobile
Socket Mobile, Inc. provides data capture and delivery solutions in the United States, Europe, Asia, and internationally. Its products and solutions are integrated into mobile applications for applications in the areas of point of sale, commercial services, asset tracking, manufacturing and quality control processes, transportation and logistics, event management, medical, and education. The company also offers cordless data capture devices that connect through Bluetooth and work with applications running on smartphones, mobile computers, and tablets; SocketScan and DuraScan 700 series, companion scanners and 800 series, attachable scanners, and wearables; and DuraSled, a barcode scanning sled that protects phones from impact damage and provides charging solutions. In addition, it offers D600, a handheld model to reads and writes various types of electronic SmartTags and transfers data with near-field communication (NFC); S550, a contactless membership card reader/writer; and S370 product that supports barcode scanning, and NFC reading and writing technologies. Further, the company provides SocketCam C820 and C860, which are camera-based barcode scanners; software developer kits, such as CaptureSDK that enables the App providers to modify captured data, control the placement of the barcoded or RFID data in their applications, and control the feedback to the user. It serves retail, commercial services, industrial and manufacturing, transportation and logistics, and healthcare industries through a network of distributors, online resellers, and application providers, as well as online stores. The company was formerly known as Socket Communications, Inc. and changed its name to Socket Mobile, Inc. in April 2008. Socket Mobile, Inc. was founded in 1992 and is headquartered in Fremont, California.
About Cemtrex
Cemtrex, Inc. engages in the provision of solutions in the technology industry. It operates through the following segments: Security, Industrial Services, and Cemtrex Corporate. The Security segment provides end-to-end security solutions to meet corporate, industrial, and governmental security challenges. The Industrial Services segment offers single-source expertise and services for rigging, millwrighting, in plant maintenance, equipment erection, relocation, and disassembly to diversified customers. The Cemtrex Corporate segment refers to the holding company of the other two segments. The company was founded on April 27, 1998 and is headquartered in Hauppauge, NY.
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