Critical Review: SkyWater Technology (NASDAQ:SKYT) versus Amkor Technology (NASDAQ:AMKR)

SkyWater Technology (NASDAQ:SKYTGet Free Report) and Amkor Technology (NASDAQ:AMKRGet Free Report) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.

Institutional & Insider Ownership

70.0% of SkyWater Technology shares are held by institutional investors. Comparatively, 42.8% of Amkor Technology shares are held by institutional investors. 37.9% of SkyWater Technology shares are held by insiders. Comparatively, 26.9% of Amkor Technology shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for SkyWater Technology and Amkor Technology, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SkyWater Technology 1 5 1 0 2.00
Amkor Technology 0 7 3 1 2.45

SkyWater Technology presently has a consensus price target of $32.00, suggesting a potential upside of 7.31%. Amkor Technology has a consensus price target of $39.14, suggesting a potential downside of 10.78%. Given SkyWater Technology’s higher possible upside, equities research analysts clearly believe SkyWater Technology is more favorable than Amkor Technology.

Risk & Volatility

SkyWater Technology has a beta of 3.51, indicating that its stock price is 251% more volatile than the S&P 500. Comparatively, Amkor Technology has a beta of 2, indicating that its stock price is 100% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
SkyWater Technology 36.36% -4.96% -1.05%
Amkor Technology 4.77% 7.26% 4.14%

Valuation and Earnings

This table compares SkyWater Technology and Amkor Technology”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SkyWater Technology $342.27 million 4.23 -$6.79 million $2.58 11.56
Amkor Technology $6.32 billion 1.72 $354.01 million $1.25 35.10

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

Summary

Amkor Technology beats SkyWater Technology on 8 of the 15 factors compared between the two stocks.

About SkyWater Technology

(Get Free Report)

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 Amkor Technology

(Get Free Report)

Amkor Technology, Inc. provides outsourced semiconductor packaging and test services in the United States, Japan, Europe, the Middle East, Africa, and the Asia Pacific. It offers turnkey packaging and test services, including semiconductor wafer bump, wafer probe, wafer back-grind, package design, packaging, system-level and final test, and drop shipment services; flip chip scale package products for smartphones, tablets, and other mobile consumer electronic devices; flip chip stacked chip scale packages that are used to stack memory digital baseband, and as applications processors in mobile devices; flip-chip ball grid array packages for various networking, storage, computing, automotive, and consumer applications; and memory products for system memory or platform data storage. The company also provides wafer-level CSP packages for power management, transceivers, sensors, wireless charging, codecs, radar, and specialty silicon; wafer-level fan-out packages used in power management, transceivers, radar, and specialty silicon; silicon wafer integrated fan-out technology that replaces a laminate substrate with a thinner structure; leadframe packages for electronic devices and mixed-signal applications; and substrate-based wirebond packages used to connect a die to a substrate. In addition, it offers micro-electro-mechanical systems packages that are miniaturized mechanical and electromechanical devices; and advanced system-in-package modules used in radio frequency and front end modules, basebands, connectivity, fingerprint sensors, display and touch screen drivers, sensors and MEMS, and NAND memory and solid-state drives. Further, the company provides wafer, package, and system level test services, as well as burn-in test and test development services. It serves integrated device manufacturers, fabless semiconductor companies, original equipment manufacturers, and contract foundries. The company was founded in 1968 and is headquartered in Tempe, Arizona.

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