NVIDIA (NASDAQ:NVDA – Get Free Report) and SkyWater Technology (NASDAQ:SKYT – 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, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.
Risk & Volatility
NVIDIA has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500. Comparatively, SkyWater Technology has a beta of 4.19, meaning that its stock price is 319% more volatile than the S&P 500.
Valuation & Earnings
This table compares NVIDIA and SkyWater Technology’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NVIDIA | $32.68 billion | 34.58 | $4.37 billion | $4.14 | 110.51 |
| SkyWater Technology | $253.32 million | 0.98 | -$39.59 million | ($0.53) | -10.13 |
Profitability
This table compares NVIDIA and SkyWater Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NVIDIA | 31.59% | 45.50% | 24.72% |
| SkyWater Technology | -9.02% | -42.92% | -7.73% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for NVIDIA and SkyWater Technology, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NVIDIA | 1 | 1 | 35 | 2 | 2.97 |
| SkyWater Technology | 0 | 0 | 1 | 0 | 3.00 |
NVIDIA currently has a consensus price target of $556.83, indicating a potential upside of 21.71%. SkyWater Technology has a consensus price target of $19.50, indicating a potential upside of 263.13%. Given SkyWater Technology’s stronger consensus rating and higher possible upside, analysts clearly believe SkyWater Technology is more favorable than NVIDIA.
Insider & Institutional Ownership
64.8% of NVIDIA shares are owned by institutional investors. Comparatively, 19.5% of SkyWater Technology shares are owned by institutional investors. 4.0% of NVIDIA shares are owned by insiders. Comparatively, 50.3% of SkyWater Technology shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
NVIDIA beats SkyWater Technology on 11 of the 15 factors compared between the two stocks.
About NVIDIA
NVIDIA Corporation provides graphics, and compute and networking solutions in the United States, Taiwan, China, and internationally. The company's Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building 3D designs and virtual worlds. Its Compute & Networking segment provides Data Center platforms and systems for AI, HPC, and accelerated computing; Mellanox networking and interconnect solutions; automotive AI Cockpit, autonomous driving development agreements, and autonomous vehicle solutions; cryptocurrency mining processors; Jetson for robotics and other embedded platforms; and NVIDIA AI Enterprise and other software. The company's products are used in gaming, professional visualization, datacenter, and automotive markets. NVIDIA Corporation sells its products to original equipment manufacturers, original device manufacturers, system builders, add-in board manufacturers, retailers/distributors, independent software vendors, Internet and cloud service providers, automotive manufacturers and tier-1 automotive suppliers, mapping companies, start-ups, and other ecosystem participants. It has a strategic collaboration with Kroger Co. NVIDIA Corporation was incorporated in 1993 and is headquartered in Santa Clara, California.
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 and manufacturing services. 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, power discrete, micro-electromechanical systems, and rad-hard integrated circuits. It serves customers operating in the computation, aerospace and defense, automotive and transportation, bio-health, consumer, and industrial/internet of things industries. The company was incorporated in 2017 and is headquartered in Bloomington, Minnesota.
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