Analyzing Sonendo (SONX) & Its Peers

Sonendo (NYSE:SONX) is one of 14 public companies in the “Dental equipment & supplies” industry, but how does it compare to its peers? We will compare Sonendo to similar businesses based on the strength of its profitability, analyst recommendations, valuation, risk, earnings, institutional ownership and dividends.

Institutional & Insider Ownership

28.7% of Sonendo shares are owned by institutional investors. Comparatively, 38.9% of shares of all “Dental equipment & supplies” companies are owned by institutional investors. 6.4% of Sonendo shares are owned by company insiders. Comparatively, 23.6% of shares of all “Dental equipment & supplies” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Sonendo and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sonendo	-138.88%	-121.92%	-58.04%
Sonendo Competitors	-38.90%	-107.47%	-16.13%

Risk & Volatility

Sonendo has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500. Comparatively, Sonendo’s peers have a beta of 1.12, indicating that their average share price is 12% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Sonendo and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sonendo	0	3	1	0	2.25
Sonendo Competitors	126	236	295	0	2.26

Sonendo presently has a consensus target price of $1.88, suggesting a potential upside of 1,938.04%. As a group, “Dental equipment & supplies” companies have a potential upside of 147.74%. Given Sonendo’s higher possible upside, equities research analysts plainly believe Sonendo is more favorable than its peers.

Valuation & Earnings

This table compares Sonendo and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sonendo	$44.40 million	-$60.92 million	-0.14
Sonendo Competitors	$1.43 billion	-$41.50 million	0.90

Sonendo’s peers have higher revenue and earnings than Sonendo. Sonendo is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Sonendo peers beat Sonendo on 10 of the 12 factors compared.

Sonendo Company Profile

Sonendo, Inc., a commercial-stage medical technology company, develops, manufactures, and commercializes devices for root canal therapy in the United States and Canada. It provides GentleWave, a tooth decay treatment, a technology platform designed for cleaning and disinfecting the microscopic spaces within teeth without the need to remove tooth structure. The company also offers SoundSeal, a material used to build and create a sealing platform on the top of the crown; and Sonendo-branded liquid solution of ethylenediaminetetraacetic acid EDTA that is used to help debride and disinfect the root canal system. In addition, it provides The Digital Office, a practice management software to enable an integrated digital office for dental practitioners. The company was formerly known as Dentatek Corporation and changed its name to Sonendo, Inc. in March 2011. The company was incorporated in 2006 and is headquartered in Laguna Hills, California.