Reviewing SkyWater Technology (NASDAQ:SKYT) & Lattice Semiconductor (NASDAQ:LSCC)

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

Earnings & Valuation

This table compares SkyWater Technology and Lattice Semiconductor’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SkyWater Technology	$286.68 million	1.05	-$30.76 million	($0.69)	-9.20
Lattice Semiconductor	$737.15 million	8.43	$259.06 million	$1.56	28.90

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

Insider & Institutional Ownership

70.0% of SkyWater Technology shares are owned by institutional investors. Comparatively, 98.1% of Lattice Semiconductor shares are owned by institutional investors. 42.6% of SkyWater Technology shares are owned by insiders. Comparatively, 1.8% of Lattice Semiconductor shares are owned 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SkyWater Technology	-10.73%	-32.59%	-6.66%
Lattice Semiconductor	30.26%	23.39%	19.34%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for SkyWater Technology and Lattice Semiconductor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SkyWater Technology	0	0	4	0	3.00
Lattice Semiconductor	1	1	9	0	2.73

SkyWater Technology presently has a consensus target price of $13.25, indicating a potential upside of 108.66%. Lattice Semiconductor has a consensus target price of $66.55, indicating a potential upside of 47.62%. Given SkyWater Technology’s stronger consensus rating and higher possible upside, equities analysts plainly believe SkyWater Technology is more favorable than Lattice Semiconductor.

Risk & Volatility

SkyWater Technology has a beta of 3.94, meaning that its stock price is 294% more volatile than the S&P 500. Comparatively, Lattice Semiconductor has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500.

Summary

Lattice Semiconductor beats SkyWater Technology on 10 of the 14 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 Lattice Semiconductor

Lattice Semiconductor Corporation, together with its subsidiaries, develops and sells semiconductor products in Asia, Europe, and the Americas. The company offers field programmable gate arrays that consist of four product families, including the Lattice Certus and ECP, Mach, iCE, and CrossLink. It also provides video connectivity application specific standard products. In addition, the company licenses its technology portfolio through standard IP and IP core licensing, patent monetization, and IP services. It sells its products directly to customers, and indirectly through a network of independent manufacturers' representatives and independent distributors. The company primarily serves original equipment manufacturers in the communications and computing, consumer, and industrial, and automotive markets. Lattice Semiconductor Corporation was incorporated in 1983 and is headquartered in Hillsboro, Oregon.