Head-To-Head Analysis: GlobalFoundries (NASDAQ:GFS) versus SkyWater Technology (NASDAQ:SKYT)

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

Risk & Volatility

GlobalFoundries has a beta of 1.77, meaning that its stock price is 77% more volatile than the S&P 500. Comparatively, SkyWater Technology has a beta of 3.32, meaning that its stock price is 232% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GlobalFoundries	11.40%	6.85%	4.76%
SkyWater Technology	21.04%	-7.88%	-1.93%

Insider and Institutional Ownership

70.0% of SkyWater Technology shares are held by institutional investors. 22.6% 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 stock is poised for long-term growth.

Earnings & Valuation

This table compares GlobalFoundries and SkyWater Technology”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GlobalFoundries	$6.79 billion	6.66	$885.00 million	$1.39	59.29
SkyWater Technology	$442.14 million	3.88	$118.91 million	$2.33	14.94

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

Analyst Recommendations

This is a breakdown of recent recommendations for GlobalFoundries and SkyWater Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GlobalFoundries	1	10	8	0	2.37
SkyWater Technology	1	6	1	0	2.00

GlobalFoundries currently has a consensus price target of $74.63, suggesting a potential downside of 9.45%. SkyWater Technology has a consensus price target of $32.00, suggesting a potential downside of 8.10%. Given SkyWater Technology’s higher possible upside, analysts plainly believe SkyWater Technology is more favorable than GlobalFoundries.

Summary

GlobalFoundries beats SkyWater Technology on 8 of the 14 factors compared between the two stocks.

About GlobalFoundries

GlobalFoundries Inc., a semiconductor foundry, provides range of mainstream wafer fabrication services and technologies worldwide. It manufactures various semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units. GlobalFoundries Inc. has a strategic partnership with Efficient Computer to develop high-performance computer processors. The company was incorporated in 2008 and is headquartered in Malta, New York.

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.