Adesto Technologies (NASDAQ: IOTS) and Smart Global (NASDAQ:SGH) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.

Profitability

This table compares Adesto Technologies and Smart Global’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Adesto Technologies -13.86% -16.47% -7.57%
Smart Global N/A N/A N/A

Valuation and Earnings

This table compares Adesto Technologies and Smart Global’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Adesto Technologies $43.97 million 3.77 -$11.61 million ($0.45) -17.44
Smart Global $132.88 million 5.08 -$7.79 million N/A N/A

Smart Global has higher revenue and earnings than Adesto Technologies.

Institutional & Insider Ownership

38.0% of Adesto Technologies shares are held by institutional investors. Comparatively, 91.8% of Smart Global shares are held by institutional investors. 22.1% of Adesto Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Adesto Technologies and Smart Global, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Adesto Technologies 0 0 2 0 3.00
Smart Global 0 0 6 1 3.14

Adesto Technologies presently has a consensus target price of $8.50, suggesting a potential upside of 8.28%. Smart Global has a consensus target price of $36.36, suggesting a potential upside of 16.83%. Given Smart Global’s stronger consensus rating and higher possible upside, analysts plainly believe Smart Global is more favorable than Adesto Technologies.

Summary

Smart Global beats Adesto Technologies on 11 of the 12 factors compared between the two stocks.

Adesto Technologies Company Profile

Adesto Technologies Corporation is a provider of application-specific and ultra-low power non-volatile memory products. The Company optimizes its non-volatile memory products for Internet of Things (IoT), applications, including current and next-generation Internet-connected devices in the consumer, industrial, medical and wearables markets. It operates in application-specific and feature-rich, ultra-low power non-volatile memory (NVM) products segment. It combines its non-volatile memory design capabilities with intellectual property and differentiated technology platforms to deliver products that manage the overall energy consumption of its customers’ systems and battery life. Its products feature embedded intelligence in a small form factor. It sells its products directly to original equipment manufacturers and original design manufacturers, respectively that manufacture products for its end customers.

Smart Global Company Profile

Smart Global Holdings Inc. is a holding company. The Company through its subsidiaries provides specialty memory solutions. The Company manufactures memory for desktops, notebooks, servers and mobile memory for smartphones. The Company also serves original equipment manufacturer (OEM), customers to develop memory solutions. The Company also provides customized, integrated supply chain services to certain OEM customers to assist them in the management and execution of their procurement processes. The Company offers its products and services under a range of categories including dynamic random-access memory (DRAM) components, DRAM modules, flash components, mobile memory and supply chain services. The Company offers a range of DRAM modules including DIMMs, nonvolatile DIMMs, load reducing DIMMs, registered DIMMs, unbuffered DIMMs, small outline DIMMs, and mini-DIMMs.

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