Reviewing Sumco (OTCMKTS:SUOPY) and SkyWater Technology (NASDAQ:SKYT)

Sumco (OTCMKTS:SUOPY) and SkyWater Technology (NASDAQ:SKYT) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.

Risk and Volatility

Sumco has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, SkyWater Technology has a beta of 3.96, suggesting that its share price is 296% more volatile than the S&P 500.

Institutional and Insider Ownership

0.0% of Sumco shares are owned by institutional investors. Comparatively, 70.0% of SkyWater Technology shares are owned by institutional investors. 42.6% of SkyWater Technology shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Sumco and SkyWater Technology”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sumco	$3.04 billion	1.22	$453.58 million	$1.25	16.92
SkyWater Technology	$286.68 million	1.50	-$30.76 million	($0.69)	-13.10

Sumco has higher revenue and earnings than SkyWater Technology. SkyWater Technology is trading at a lower price-to-earnings ratio than Sumco, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Sumco and SkyWater Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sumco	0	0	0	0	N/A
SkyWater Technology	0	0	4	0	3.00

SkyWater Technology has a consensus target price of $12.00, indicating a potential upside of 32.74%. Given SkyWater Technology’s higher possible upside, analysts plainly believe SkyWater Technology is more favorable than Sumco.

Profitability

This table compares Sumco and SkyWater Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sumco	6.66%	4.15%	2.38%
SkyWater Technology	-7.88%	-21.68%	-4.35%

Summary

Sumco beats SkyWater Technology on 7 of the 13 factors compared between the two stocks.

About Sumco

Sumco Corporation manufactures and sells silicon wafers for the semiconductor industry in Japan, the United States, China, Taiwan, Korea, and internationally. It provides monocrystalline ingots, as well as polished, annealed, epitaxial, junction isolated, silicon-on-insulator, and reclaimed polished wafers. The company was formerly known as Sumitomo Mitsubishi Silicon Corp. and changed its name to Sumco Corporation in August 2005. Sumco Corporation was incorporated in 1999 and is headquartered in Tokyo, Japan.

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.