Comparing SkyWater Technology (NASDAQ:SKYT) and SuperCom (NASDAQ:SPCB)

SuperCom (NASDAQ:SPCB) and SkyWater Technology (NASDAQ:SKYT) are both small-cap industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.

Valuation and Earnings

This table compares SuperCom and SkyWater Technology”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SuperCom	$26.57 million	0.09	-$4.02 million	($0.25)	-15.28
SkyWater Technology	$323.74 million	1.32	-$30.76 million	($0.69)	-13.10

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

Volatility and Risk

SuperCom has a beta of 0.06, suggesting that its share price is 94% less 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

47.8% of SuperCom shares are held by institutional investors. Comparatively, 70.0% of SkyWater Technology shares are held by institutional investors. 18.3% of SuperCom shares are held by company insiders. Comparatively, 42.5% of SkyWater Technology shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for SuperCom and SkyWater Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SuperCom	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 probable upside, analysts clearly believe SkyWater Technology is more favorable than SuperCom.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SuperCom	5.70%	101.73%	16.82%
SkyWater Technology	-7.88%	-21.68%	-4.35%

Summary

SkyWater Technology beats SuperCom on 8 of the 13 factors compared between the two stocks.

About SuperCom

SuperCom Ltd. provides digital identity, Internet of Things and connectivity, and cyber security products and solutions to governments, and private and public organizations worldwide. The company operates in three segments: e-Gov, IoT and Connectivity, and Cyber Security. It offers MAGNA, a platform for national ID registries, e-passports, biometric visas, automated fingerprint identification systems, digitized driver's licenses, and electronic voter registration and election management. The company also provides PureRF, a solution based on RFID tag technology to identify, locate, track, monitor, count, and protect people and objects. Its PureRF suite includes PureRF Tags, Hands-Free Long-Range RFID Asset and Vehicle Tags, PureRF Readers, PureRF Activators, PureRF Initializer, House Arrest Monitoring System, PureRF RF Bracelet, PureCom RF Base Station, GOS Offender Tracking System, PureTrack, PureBeacon, PureMonitor Offender Electronic Monitoring Software, Inmate Monitoring System, DoorGuard, and Personnel Tag. In addition, the company offers domestic violence victim protection systems. Further, it provides connectivity products and solutions comprising AVIDITY WBSac, BOLSTER WBSn, BreezeULTRA P6000, Arena controller, and BreezeNET B; cyber security strategic business unit products and solutions, which include Safend Encryptor, Safend Protector, Safend Inspector, Safend Discoverer, and SafeMobile; and wireless and RFID products include solutions for carrier Wi-Fi, enterprise connectivity, smart city, smart hospitality, connected campuses, and connected events. It sells its systems and products through local representatives, subsidiaries, and distribution channels, as well as independent representatives, resellers, and distributors. The company was formerly known as Vuance Ltd. and changed its name to SuperCom Ltd. in January 2013. SuperCom Ltd. was incorporated in 1988 and is headquartered in Tel Aviv, Israel.

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.