SkyWater Technology (NASDAQ:SKYT – Get Rating) and Power Integrations (NASDAQ:POWI – Get Rating) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, earnings, valuation and analyst recommendations.
Valuation and Earnings
This table compares SkyWater Technology and Power Integrations' top-line revenue, earnings per share (EPS) and valuation.
Get SkyWater Technology alerts:| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SkyWater Technology | $162.85 million | 1.82 | -$50.70 million | ($1.79) | -4.08 |
| Power Integrations | $703.28 million | 5.43 | $164.41 million | $3.08 | 21.25 |
Power Integrations has higher revenue and earnings than SkyWater Technology. SkyWater Technology is trading at a lower price-to-earnings ratio than Power Integrations, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
SkyWater Technology has a beta of 5.44, indicating that its share price is 444% more volatile than the S&P 500. Comparatively, Power Integrations has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.Analyst Ratings
This is a breakdown of current ratings for SkyWater Technology and Power Integrations, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SkyWater Technology | 0 | 0 | 5 | 0 | 3.00 |
| Power Integrations | 0 | 0 | 2 | 0 | 3.00 |
SkyWater Technology currently has a consensus target price of $19.20, indicating a potential upside of 162.65%. Power Integrations has a consensus target price of $91.20, indicating a potential upside of 39.34%. Given SkyWater Technology's higher probable upside, equities analysts plainly believe SkyWater Technology is more favorable than Power Integrations.
Profitability
This table compares SkyWater Technology and Power Integrations' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SkyWater Technology | -41.71% | -99.57% | -21.15% |
| Power Integrations | 25.83% | 22.44% | 20.07% |
Insider & Institutional Ownership
10.2% of SkyWater Technology shares are held by institutional investors. Comparatively, 97.4% of Power Integrations shares are held by institutional investors. 72.8% of SkyWater Technology shares are held by insiders. Comparatively, 1.6% of Power Integrations shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Power Integrations beats SkyWater Technology on 8 of the 12 factors compared between the two stocks.
About SkyWater Technology
(Get Rating)
SkyWater Technology, Inc., together with its subsidiaries, provides 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, microelectromechanical 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.
About Power Integrations
(Get Rating)
Power Integrations, Inc. designs, develops, manufactures, and markets analog and mixed-signal integrated circuits (ICs), and other electronic components and circuitry used in high-voltage power conversion worldwide. The company provides a range of alternating current to direct current power conversion products that address power supply ranging from less than one watt of output to approximately 500 watts of output for mobile-device chargers, consumer appliances, utility meters, LCD monitors, main and standby power supplies for desktop computers and TVs, LED lighting, and various other consumer and industrial applications, as well as power conversion in high-power applications comprising industrial motors, solar and wind-power systems, electric vehicles, and high-voltage DC transmission systems. It also offers high-voltage diodes; high-voltage gate-driver products used to operate high-voltage switches, such as insulated-gate bipolar transistors and silicon-carbide MOSFETs under the SCALE and SCALE-2 product-family names; and SCALE-iDriver for use in powertrain and charging applications for electric vehicles. In addition, the company provides motor-driver ICs for use in refrigerator compressors, ceiling fans, and air purifiers, as well as pumps, fans, and blowers used in consumer appliances, such as dishwashers and laundry machines. It serves communications, computer, consumer, and industrial markets. The company sells its products to original equipment manufacturers and merchant power supply manufacturers through direct sales force, as well as a network of independent sales representatives and distributors. Power Integrations, Inc. was incorporated in 1988 and is headquartered in San Jose, California.
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