SkyWater Technology (NASDAQ:SKYT – Get Rating) and SMART Global (NASDAQ:SGH – Get Rating) 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 institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.
Profitability
This table compares SkyWater Technology and SMART Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SkyWater Technology | -41.71% | -99.57% | -21.15% |
| SMART Global | 3.64% | 48.23% | 11.82% |
Insider and Institutional Ownership
17.2% of SkyWater Technology shares are held by institutional investors. Comparatively, 52.6% of SMART Global shares are held by institutional investors. 72.8% of SkyWater Technology shares are held by insiders. Comparatively, 2.6% of SMART Global shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current recommendations for SkyWater Technology and SMART Global, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SkyWater Technology | 0 | 0 | 5 | 0 | 3.00 |
| SMART Global | 0 | 0 | 5 | 0 | 3.00 |
SkyWater Technology currently has a consensus target price of $19.20, indicating a potential upside of 10.09%. SMART Global has a consensus target price of $36.00, indicating a potential upside of 77.69%. Given SMART Global’s higher probable upside, analysts plainly believe SMART Global is more favorable than SkyWater Technology.
Volatility & Risk
SkyWater Technology has a beta of 5.59, suggesting that its share price is 459% more volatile than the S&P 500. Comparatively, SMART Global has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500.
Earnings and Valuation
This table compares SkyWater Technology and SMART Global’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SkyWater Technology | $162.85 million | 4.32 | -$50.70 million | ($1.79) | -9.74 |
| SMART Global | $1.50 billion | 0.67 | $21.31 million | $1.24 | 16.40 |
SMART Global has higher revenue and earnings than SkyWater Technology. SkyWater Technology is trading at a lower price-to-earnings ratio than SMART Global, indicating that it is currently the more affordable of the two stocks.
Summary
SMART Global beats SkyWater Technology on 9 of the 12 factors compared between the two stocks.
About SkyWater Technology
SkyWater Technology, Inc., together with its subsidiaries, provides semiconductor development and manufacturing services. The company offers engineering and process development support services to co-create technologies with customers; and semiconductor manufacturing services for various silicon-based analog and mixed-signal, power discrete, microelectromechanical systems, and rad-hard integrated circuits. It serves customers operating in the computation, aerospace and defense, automotive and transportation, bio-health, consumer, and industrial/internet of things industries. The company was incorporated in 2017 and is headquartered in Bloomington, Minnesota.
About SMART Global
SMART Global Holdings, Inc. designs and manufactures specialty solutions for the computing, memory, and LED markets in the United states, Brazil, China, Europe, and internationally. It operates through Memory Solutions, Intelligent Platforms Solutions, and LED Solutions segments. The company offers dynamic random access memory modules for desktops, notebooks, servers, and smartphones; embedded and removable flash memory products; and flash component products. It also provides supply chain services, including procurement, logistics, inventory management, temporary warehousing, programming, kitting, and packaging. In addition, the company offers Penguin Computing solutions to customers in financial services, energy, government, social media, and education end markets; Penguin Edge solutions to government, telecommunications, health care, smart city, network edge, and industrial applications; and hardware and software products, including solutions based on the Open Compute Project. Further, it provides servers, software, integrated turn-key clusters, enterprise-grade storage, and networking in hardware or cloud-based solutions through Penguin-On-Demand; Open Compute Tundra Extreme Scale products; turn-key storage solutions; and rackmount servers and GPU accelerated computing platforms. Additionally, the company’s LED Solutions offers application-optimized LEDs for lighting, video screens, and specialty lighting applications under the CreeLED brand. It sells its products directly to original equipment manufacturers, enterprise, government and other end customers through direct sales force, e-commerce, customer service representatives, on-site field application engineers, independent sales representatives, distributors, integrators, and resellers. The company was formerly known as Saleen Holdings, Inc. and changed its name to SMART Global Holdings, Inc. in August 2014. SMART Global Holdings, Inc. was founded in 1988 and is headquartered in Newark, California.
Receive News & Ratings for SkyWater Technology Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for SkyWater Technology and related companies with MarketBeat.com’s FREE daily email newsletter.
