SkyWater Technology (NASDAQ:SKYT – Get Free Report) and GlobalFoundries (NASDAQ:GFS – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.
Insider and Institutional Ownership
70.0% of SkyWater Technology shares are held by institutional investors. 22.6% of SkyWater Technology shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Risk and Volatility
SkyWater Technology has a beta of 3.32, suggesting that its stock price is 232% more volatile than the S&P 500. Comparatively, GlobalFoundries has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SkyWater Technology | 1 | 6 | 1 | 0 | 2.00 |
| GlobalFoundries | 1 | 10 | 9 | 0 | 2.40 |
SkyWater Technology presently has a consensus price target of $32.00, suggesting a potential downside of 8.70%. GlobalFoundries has a consensus price target of $73.29, suggesting a potential downside of 12.43%. Given SkyWater Technology’s higher possible upside, equities research analysts plainly believe SkyWater Technology is more favorable than GlobalFoundries.
Profitability
This table compares SkyWater Technology and GlobalFoundries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SkyWater Technology | 21.04% | -7.88% | -1.93% |
| GlobalFoundries | 11.40% | 6.85% | 4.76% |
Earnings & Valuation
This table compares SkyWater Technology and GlobalFoundries”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SkyWater Technology | $541.53 million | 3.18 | $118.91 million | $2.33 | 15.04 |
| GlobalFoundries | $6.84 billion | 6.71 | $885.00 million | $1.39 | 60.22 |
GlobalFoundries has higher revenue and earnings than SkyWater Technology. SkyWater Technology is trading at a lower price-to-earnings ratio than GlobalFoundries, indicating that it is currently the more affordable of the two stocks.
Summary
GlobalFoundries beats SkyWater Technology on 8 of the 14 factors compared between the two stocks.
About SkyWater Technology
SkyWater Technology, Inc., together with its subsidiaries, operates as a pure-play technology foundry that engages in the provision of semiconductor development, manufacturing, and packaging services in the United States. 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, micro-electromechanical systems, and rad-hard integrated circuits. It serves customers operating in the computation, aerospace and defense, automotive, bio-health, consumer, and industrial sectors. The company was incorporated in 2016 and is headquartered in Bloomington, Minnesota.
About GlobalFoundries
GlobalFoundries Inc., a semiconductor foundry, provides range of mainstream wafer fabrication services and technologies worldwide. It manufactures various semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units. GlobalFoundries Inc. has a strategic partnership with Efficient Computer to develop high-performance computer processors. The company was incorporated in 2008 and is headquartered in Malta, New York.
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