Smart Global (NASDAQ: SGH) and Adesto Technologies (NASDAQ:IOTS) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and target prices for Smart Global and Adesto Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Smart Global 0 0 6 1 3.14
Adesto Technologies 0 0 2 0 3.00

Smart Global currently has a consensus price target of $36.36, suggesting a potential upside of 24.26%. Adesto Technologies has a consensus price target of $8.50, suggesting a potential upside of 25.93%. Given Adesto Technologies’ higher probable upside, analysts clearly believe Adesto Technologies is more favorable than Smart Global.

Institutional & Insider Ownership

92.2% of Smart Global shares are held by institutional investors. Comparatively, 38.0% of Adesto Technologies shares are held by institutional investors. 22.1% of Adesto Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Smart Global and Adesto Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Smart Global N/A N/A N/A
Adesto Technologies -13.86% -16.47% -7.57%

Earnings and Valuation

This table compares Smart Global and Adesto Technologies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Smart Global $132.88 million 4.77 -$7.79 million N/A N/A
Adesto Technologies $43.97 million 3.25 -$11.61 million ($0.45) -15.00

Smart Global has higher revenue and earnings than Adesto Technologies.

Summary

Smart Global beats Adesto Technologies on 10 of the 12 factors compared between the two stocks.

About Smart Global

Smart Global Holdings Inc. is a holding company. The Company through its subsidiaries provides specialty memory solutions. The Company manufactures memory for desktops, notebooks, servers and mobile memory for smartphones. The Company also serves original equipment manufacturer (OEM), customers to develop memory solutions. The Company also provides customized, integrated supply chain services to certain OEM customers to assist them in the management and execution of their procurement processes. The Company offers its products and services under a range of categories including dynamic random-access memory (DRAM) components, DRAM modules, flash components, mobile memory and supply chain services. The Company offers a range of DRAM modules including DIMMs, nonvolatile DIMMs, load reducing DIMMs, registered DIMMs, unbuffered DIMMs, small outline DIMMs, and mini-DIMMs.

About Adesto Technologies

Adesto Technologies Corporation is a provider of application-specific and ultra-low power non-volatile memory products. The Company optimizes its non-volatile memory products for Internet of Things (IoT), applications, including current and next-generation Internet-connected devices in the consumer, industrial, medical and wearables markets. It operates in application-specific and feature-rich, ultra-low power non-volatile memory (NVM) products segment. It combines its non-volatile memory design capabilities with intellectual property and differentiated technology platforms to deliver products that manage the overall energy consumption of its customers’ systems and battery life. Its products feature embedded intelligence in a small form factor. It sells its products directly to original equipment manufacturers and original design manufacturers, respectively that manufacture products for its end customers.

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