Head-To-Head Survey: Rohm (OTCMKTS:ROHCY) vs. SkyWater Technology (NASDAQ:SKYT)

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

Analyst Ratings

This is a summary of current recommendations for Rohm and SkyWater Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rohm	0	1	1	0	2.50
SkyWater Technology	1	6	1	0	2.00

SkyWater Technology has a consensus target price of $32.00, suggesting a potential downside of 1.42%. Given SkyWater Technology’s higher possible upside, analysts plainly believe SkyWater Technology is more favorable than Rohm.

Volatility & Risk

Rohm has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500. Comparatively, SkyWater Technology has a beta of 3.39, indicating that its share price is 239% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rohm	-29.85%	4.23%	2.63%
SkyWater Technology	21.04%	-7.88%	-1.93%

Valuation and Earnings

This table compares Rohm 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
Rohm	$3.20 billion	3.58	-$1.05 billion	($2.57)	-11.52
SkyWater Technology	$442.14 million	3.61	$118.91 million	$2.33	13.93

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

Institutional & Insider Ownership

70.0% of SkyWater Technology shares are owned by institutional investors. 22.6% of SkyWater Technology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

SkyWater Technology beats Rohm on 9 of the 13 factors compared between the two stocks.

About Rohm

ROHM Co., Ltd. manufactures and sells electronic components worldwide. The company operates through three segments: LSI, Semiconductor Devices, and Modules. It provides ICs comprising memory, amplifiers and linear, power management, motor/actuator drivers, resistors, clocks and timers, switches and multiplexers, logic, data converters, sensors and MEMS, display drivers, interfaces, wireless LSIs, audio and video products, speech synthesis LSI, and microcontrollers. The company also offers discrete semiconductor products, such as MOSFETs, bipolar transistors, and diodes; power devices, including power transistors and diodes, SiC power devices, IGBT, and IPM; modules, including optical modules, wireless communication modules, wireless charger modules, and print heads; and opto devices comprising LEDs, LED displays, laser diodes, and optical sensors, as well as foundry services, including thin-film piezoelectric MEMS, wafers, and WL-CSP. Its products are used in industry, automotive, consumer electronics, and telecommunications applications. The company was incorporated in 1940 and is headquartered in Kyoto, 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.