Critical Analysis: OriginClear (OTCMKTS:OCLN) vs. Sono-Tek (NASDAQ:SOTK)

Sono-Tek (NASDAQ:SOTK) and OriginClear (OTCMKTS:OCLN) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, institutional ownership, profitability, valuation, analyst recommendations, risk and dividends.

Risk & Volatility

Sono-Tek has a beta of -0.28, suggesting that its share price is 128% less volatile than the S&P 500. Comparatively, OriginClear has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Sono-Tek and OriginClear, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sono-Tek	0	0	0	0	N/A
OriginClear	0	0	0	0	N/A

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sono-Tek	8.14%	10.69%	7.55%
OriginClear	N/A	N/A	-9.16%

Earnings and Valuation

This table compares Sono-Tek and OriginClear”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sono-Tek	$21.13 million	3.24	$1.44 million	$0.10	43.40
OriginClear	$30,000.00	356.63	-$11.63 million	N/A	N/A

Sono-Tek has higher revenue and earnings than OriginClear.

Insider and Institutional Ownership

47.9% of Sono-Tek shares are held by institutional investors. 6.7% of Sono-Tek shares are held by company insiders. Comparatively, 0.4% of OriginClear 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.

Summary

Sono-Tek beats OriginClear on 7 of the 9 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 OriginClear

OriginClear, Inc. provides water treatment solutions worldwide. It licenses its Electro Water Separation water cleanup technology that utilizes a catalytic process to concentrate and eliminate suspended solids in commercial and industrial wastewater; and Advanced Oxidation technology for reducing or eliminating dissolved organic microtoxins, which includes bacteria and viruses, hormones, drugs, and pesticides. The company also designs and manufactures a line of water treatment systems for municipal, industrial, commercial, and pure water applications. In addition, it offers a range of services, including maintenance contracts, retrofits, and replacement assistance; and rents equipment through contracts of varying duration, as well as provides prefabricated water transport and treatment products. The company was formerly known as OriginOil, Inc. and changed its name to OriginClear, Inc. in April 2015. OriginClear, Inc. was incorporated in 2007 and is headquartered in Clearwater, Florida.