Adesto Technologies Corporation (NASDAQ: IOTS) and SMART Global Holdings (NASDAQ:SGH) are both small-cap 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.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Adesto Technologies Corporation and SMART Global Holdings, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Adesto Technologies Corporation 0 0 2 0 3.00
SMART Global Holdings 0 0 6 1 3.14

Adesto Technologies Corporation presently has a consensus target price of $8.50, indicating a potential upside of 3.66%. SMART Global Holdings has a consensus target price of $36.36, indicating a potential downside of 10.56%. Given Adesto Technologies Corporation’s higher possible upside, equities research analysts plainly believe Adesto Technologies Corporation is more favorable than SMART Global Holdings.

Valuation & Earnings

This table compares Adesto Technologies Corporation and SMART Global Holdings’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Adesto Technologies Corporation $43.97 million 3.94 -$11.61 million ($0.45) -18.22
SMART Global Holdings $132.88 million 6.66 -$7.79 million N/A N/A

SMART Global Holdings has higher revenue and earnings than Adesto Technologies Corporation.

Profitability

This table compares Adesto Technologies Corporation and SMART Global Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Adesto Technologies Corporation -13.86% -16.47% -7.57%
SMART Global Holdings N/A N/A N/A

Institutional and Insider Ownership

35.2% of Adesto Technologies Corporation shares are owned by institutional investors. Comparatively, 27.4% of SMART Global Holdings shares are owned by institutional investors. 22.1% of Adesto Technologies Corporation 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.

Summary

SMART Global Holdings beats Adesto Technologies Corporation on 9 of the 12 factors compared between the two stocks.

Adesto Technologies Corporation Company Profile

Adesto Technologies Corporation is a provider of application-specific and ultra-low power non-volatile memory products. The Company optimizes its non-volatile memory products for Internet of Things (IoT), applications, including current and next-generation Internet-connected devices in the consumer, industrial, medical and wearables markets. It operates in application-specific and feature-rich, ultra-low power non-volatile memory (NVM) products segment. It combines its non-volatile memory design capabilities with intellectual property and differentiated technology platforms to deliver products that manage the overall energy consumption of its customers’ systems and battery life. Its products feature embedded intelligence in a small form factor. It sells its products directly to original equipment manufacturers and original design manufacturers, respectively that manufacture products for its end customers.

SMART Global Holdings Company Profile

Smart Global Holdings Inc. is a holding company. The Company through its subsidiaries provides specialty memory solutions. The Company manufactures memory for desktops, notebooks, servers and mobile memory for smartphones. The Company also serves original equipment manufacturer (OEM), customers to develop memory solutions. The Company also provides customized, integrated supply chain services to certain OEM customers to assist them in the management and execution of their procurement processes. The Company offers its products and services under a range of categories including dynamic random-access memory (DRAM) components, DRAM modules, flash components, mobile memory and supply chain services. The Company offers a range of DRAM modules including DIMMs, nonvolatile DIMMs, load reducing DIMMs, registered DIMMs, unbuffered DIMMs, small outline DIMMs, and mini-DIMMs.

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