SmartKem (NASDAQ:SMTK – Get Free Report) and QuickLogic (NASDAQ:QUIK – Get Free Report) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.
Profitability
This table compares SmartKem and QuickLogic’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SmartKem | -6,262.36% | -610.88% | -199.55% |
| QuickLogic | -40.36% | -27.35% | -13.58% |
Valuation and Earnings
This table compares SmartKem and QuickLogic”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SmartKem | $80,000.00 | 87.96 | -$10.33 million | ($2.27) | -0.68 |
| QuickLogic | $18.36 million | 5.54 | -$3.84 million | ($0.57) | -10.44 |
QuickLogic has higher revenue and earnings than SmartKem. QuickLogic is trading at a lower price-to-earnings ratio than SmartKem, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings for SmartKem and QuickLogic, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SmartKem | 1 | 0 | 0 | 0 | 1.00 |
| QuickLogic | 1 | 2 | 1 | 0 | 2.00 |
QuickLogic has a consensus target price of $11.30, indicating a potential upside of 89.92%. Given QuickLogic’s stronger consensus rating and higher possible upside, analysts clearly believe QuickLogic is more favorable than SmartKem.
Volatility and Risk
SmartKem has a beta of 4.81, meaning that its share price is 381% more volatile than the S&P 500. Comparatively, QuickLogic has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.
Institutional & Insider Ownership
31.5% of QuickLogic shares are held by institutional investors. 13.8% of SmartKem shares are held by company insiders. Comparatively, 1.5% of QuickLogic shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
QuickLogic beats SmartKem on 10 of the 14 factors compared between the two stocks.
About SmartKem
SmartKem, Inc. develops electronics transistors using its proprietary advanced semiconductor materials. Its technology can be used in a range of applications including next generation MicroLED, LCD and AMOLED displays, as well as advanced computer and AI chip packaging, and a new type of sensor. The company was founded on September 21, 2018 and is headquartered in Blackley, the United Kingdom.
About QuickLogic
QuickLogic Corporation operates as a fabless semiconductor company in the United States. The company offers embedded FPGA intellectual property, low power, multicore semiconductor system-on-chips, discrete FPGAs, and AI software; and end-to-end artificial intelligence/machine learning solution with accurate sensor algorithms using AI technology. It provides various platforms, such as software tools and eFPGA IP enables the adoption of AI, voice, and sensor processing across aerospace, and defense, consumer/industrial IOT, and consumer electronics markets. In addition, the company engages in the eFPGA IP Licensing business consisting of development and integration of eFPGA technology into custom semiconductor solutions. Further, the company offers silicon products, such as EOS, QuickAI, ArcticLink III, PolarPro 3, PolarPro II, PolarPro, and Eclipse II products; and PASIC 3 and QuickRAM, as well as programming hardware and design software services. The company markets and sells its products to defense industrial base contractors, U.S. government entities, system OEMs, and fabless semiconductor companies through a network of sales managers and distributors in North America, Europe, and the Asia Pacific. It has a strategic partnership with YorChip to develop low-power unified chiplet interconnect express FPGA chiplets. The company was founded in 1988 and is headquartered in San Jose, California.
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