SkyWater Technology (NASDAQ:SKYT – Get Free Report) and Applied Optoelectronics (NASDAQ:AAOI – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.
Analyst Ratings
This is a summary of recent ratings for SkyWater Technology and Applied Optoelectronics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SkyWater Technology | 1 | 6 | 1 | 0 | 2.00 |
| Applied Optoelectronics | 1 | 3 | 3 | 0 | 2.29 |
SkyWater Technology presently has a consensus price target of $32.00, indicating a potential downside of 8.10%. Applied Optoelectronics has a consensus price target of $113.80, indicating a potential downside of 23.19%. Given SkyWater Technology’s higher probable upside, research analysts clearly believe SkyWater Technology is more favorable than Applied Optoelectronics.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SkyWater Technology | $442.14 million | 3.88 | $118.91 million | $2.33 | 14.94 |
| Applied Optoelectronics | $455.71 million | 26.09 | -$38.23 million | ($0.66) | -224.48 |
SkyWater Technology has higher earnings, but lower revenue than Applied Optoelectronics. Applied Optoelectronics is trading at a lower price-to-earnings ratio than SkyWater Technology, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
SkyWater Technology has a beta of 3.32, indicating that its stock price is 232% more volatile than the S&P 500. Comparatively, Applied Optoelectronics has a beta of 3.66, indicating that its stock price is 266% more volatile than the S&P 500.
Profitability
This table compares SkyWater Technology and Applied Optoelectronics’ 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% |
| Applied Optoelectronics | -8.55% | -4.64% | -2.90% |
Insider & Institutional Ownership
70.0% of SkyWater Technology shares are held by institutional investors. Comparatively, 61.7% of Applied Optoelectronics shares are held by institutional investors. 22.6% of SkyWater Technology shares are held by company insiders. Comparatively, 3.8% of Applied Optoelectronics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
SkyWater Technology beats Applied Optoelectronics 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 Applied Optoelectronics
Applied Optoelectronics, Inc. designs, manufactures, and sells fiber-optic networking products in the United States, Taiwan, and China. It offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers, turn-key equipment, headend, node, distribution equipment, and amplifiers. The company sells its products to internet data center operators, cable television, telecom equipment manufacturers, fiber-to-the-home, and internet service providers through its direct and indirect sales channels. Applied Optoelectronics, Inc. was incorporated in 1997 and is headquartered in Sugar Land, Texas.
Receive News & Ratings for SkyWater Technology Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for SkyWater Technology and related companies with MarketBeat.com's FREE daily email newsletter.
