Analyzing Sigma Designs (OTCMKTS:SIGM) & SkyWater Technology (NASDAQ:SKYT)

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

Valuation & Earnings

This table compares SkyWater Technology and Sigma Designs’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SkyWater Technology	$286.68 million	1.69	-$30.76 million	($0.67)	-15.27
Sigma Designs	$65.90 million	N/A	-$120.04 million	N/A	N/A

SkyWater Technology has higher revenue and earnings than Sigma Designs.

Profitability

This table compares SkyWater Technology and Sigma Designs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SkyWater Technology	-10.73%	-30.58%	-6.30%
Sigma Designs	N/A	N/A	N/A

Insider & Institutional Ownership

70.0% of SkyWater Technology shares are held by institutional investors. 42.6% of SkyWater Technology shares are held by insiders. Comparatively, 4.5% of Sigma Designs shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

SkyWater Technology has a beta of 4.18, suggesting that its share price is 318% more volatile than the S&P 500. Comparatively, Sigma Designs has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for SkyWater Technology and Sigma Designs, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SkyWater Technology	0	0	3	0	3.00
Sigma Designs	0	0	0	0	N/A

SkyWater Technology presently has a consensus price target of $14.67, indicating a potential upside of 43.37%. Given SkyWater Technology’s higher probable upside, equities research analysts plainly believe SkyWater Technology is more favorable than Sigma Designs.

Summary

SkyWater Technology beats Sigma Designs on 7 of the 10 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 Sigma Designs

Sigma Designs, Inc., an integrated system-on-chip solutions provider, provides intelligent platforms for use in the home entertainment, and home and industrial control appliances. The company offers mobile Internet of Things solutions used primarily for tracking applications, such as small tags that can be attached to track pets, keys, children, luggage, and vehicles. It also offers legacy products; and software development kits and engineering support services for hardware and software. The company markets and sells its products through direct sales force, manufacturer representatives, distributors, and resellers to end-product manufacturers, original equipment manufacturers, and original design manufacturers in Asia, North America, Europe, and internationally. Sigma Designs, Inc. was founded in 1982 and is headquartered in Fremont, California.