Financial Review: SkyWater Technology (NASDAQ:SKYT) versus United Microelectronics (NYSE:UMC)

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

Analyst Recommendations

This is a breakdown of recent recommendations for SkyWater Technology and United Microelectronics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SkyWater Technology	0	0	4	0	3.00
United Microelectronics	0	1	2	0	2.67

SkyWater Technology currently has a consensus target price of $12.00, indicating a potential upside of 18.93%. United Microelectronics has a consensus target price of $8.90, indicating a potential upside of 2.30%. Given SkyWater Technology’s stronger consensus rating and higher possible upside, equities research analysts plainly believe SkyWater Technology is more favorable than United Microelectronics.

Valuation & Earnings

This table compares SkyWater Technology and United Microelectronics’ top-line 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	1.67	-$30.76 million	($0.69)	-14.62
United Microelectronics	$223.46 billion	0.10	$1.95 billion	$0.70	12.43

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

Volatility & Risk

SkyWater Technology has a beta of 3.94, indicating that its stock price is 294% more volatile than the S&P 500. Comparatively, United Microelectronics has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.

Profitability

This table compares SkyWater Technology and United Microelectronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SkyWater Technology	-7.88%	-21.68%	-4.35%
United Microelectronics	23.90%	14.80%	9.41%

Insider & Institutional Ownership

70.0% of SkyWater Technology shares are owned by institutional investors. Comparatively, 5.1% of United Microelectronics shares are owned by institutional investors. 42.6% of SkyWater Technology shares are owned by insiders. Comparatively, 8.0% of United Microelectronics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

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 United Microelectronics

United Microelectronics Corporation operates as a semiconductor wafer foundry in Taiwan, Singapore, China, Hong Kong, Japan, the United States, Europe, and internationally. The company provides circuit design, mask tooling, wafer fabrication, and assembly and testing services. It serves fabless design companies and integrated device manufacturers. The company was incorporated in 1980 and is headquartered in Hsinchu City, Taiwan.