Head-To-Head Review: SkyWater Technology (NASDAQ:SKYT) vs. Diodes (NASDAQ:DIOD)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SkyWater Technology	$442.14 million	3.71	$118.91 million	$2.33	14.31
Diodes	$1.48 billion	2.88	$66.14 million	$1.84	50.42

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

Analyst Ratings

This is a summary of current recommendations and price targets for SkyWater Technology and Diodes, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SkyWater Technology	1	6	1	0	2.00
Diodes	0	2	3	0	2.60

SkyWater Technology currently has a consensus target price of $32.00, indicating a potential downside of 4.02%. Diodes has a consensus target price of $113.00, indicating a potential upside of 21.81%. Given Diodes’ stronger consensus rating and higher possible upside, analysts plainly believe Diodes is more favorable than SkyWater Technology.

Profitability

This table compares SkyWater Technology and Diodes’ 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%
Diodes	5.50%	3.48%	2.74%

Risk and Volatility

SkyWater Technology has a beta of 3.34, meaning that its stock price is 234% more volatile than the S&P 500. Comparatively, Diodes has a beta of 1.88, meaning that its stock price is 88% more volatile than the S&P 500.

Institutional & Insider Ownership

70.0% of SkyWater Technology shares are held by institutional investors. Comparatively, 99.2% of Diodes shares are held by institutional investors. 22.6% of SkyWater Technology shares are held by company insiders. Comparatively, 1.7% of Diodes shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Diodes 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 Diodes

Diodes Incorporated, together with its subsidiaries, manufactures and supplies application-specific standard products in the broad discrete, logic, analog, and mixed-signal semiconductor markets worldwide. The company offers discrete semiconductor products, such as MOSFETs, SiC MOSFETs; data line protection, power line protection, thyristers, USB Type-C protection, and transient voltage suppressors; Schottky, small signal switching, Zener, and SiC diodes; bridges, super barrier, Schottky, Schottky bridge, and fast/ultra-fast rectifiers; and bipolar, avalanche, gate driver, and pre-bias transistors. It also provides analog products, including power management devices comprising AC-DC and DC-DC converters, USB power switches, low dropout, photocoupler and linear voltage regulators; standard linear devices consisting of operational amplifiers and comparators, current monitors, voltage references, and reset generators; LED lighting drivers; audio amplifiers; and sensor products, such as hall-effect sensors and motor drivers. In addition, the company offers mixed-signal products, such as high speed mux/demux, digital switches, interface, redrivers, universal level shifters/voltage translators, clock ICs and packet switches; standard logic products comprising low-voltage complementary metal-oxide-semiconductor (CMOS) and advanced high-speed CMOS devices; ultra-low power CMOS logic; and analog switches; multichip products and co-packaged discrete, analog and mixed-signal silicon in miniature packages; and silicon and silicon epitaxial wafers used in manufacturing frequency control products and contact images sensors. It serves the industrial, automotive, computing, communications, and consumer markets through direct sales, marketing personnel, independent sales representatives, and distributors. The company was incorporated in 1959 and is headquartered in Plano, Texas.