Qualcomm (NASDAQ:QCOM) & SkyWater Technology (NASDAQ:SKYT) Head to Head Comparison

Qualcomm (NASDAQ:QCOM) and SkyWater Technology (NASDAQ:SKYT) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.

Volatility and Risk

Qualcomm has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500. Comparatively, SkyWater Technology has a beta of 3.32, indicating that its stock price is 232% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Qualcomm	22.31%	42.11%	19.33%
SkyWater Technology	21.04%	-7.88%	-1.93%

Earnings & Valuation

This table compares Qualcomm and SkyWater Technology”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Qualcomm	$44.28 billion	5.45	$5.54 billion	$9.20	24.89
SkyWater Technology	$442.14 million	4.27	$118.91 million	$2.33	16.48

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

Institutional and Insider Ownership

74.4% of Qualcomm shares are owned by institutional investors. Comparatively, 70.0% of SkyWater Technology shares are owned by institutional investors. 0.1% of Qualcomm shares are owned by company insiders. Comparatively, 22.6% of SkyWater Technology shares are owned by company 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.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Qualcomm and SkyWater Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Qualcomm	4	16	14	0	2.29
SkyWater Technology	1	6	1	0	2.00

Qualcomm presently has a consensus target price of $181.79, indicating a potential downside of 20.61%. SkyWater Technology has a consensus target price of $32.00, indicating a potential downside of 16.67%. Given SkyWater Technology’s higher possible upside, analysts plainly believe SkyWater Technology is more favorable than Qualcomm.

Summary

Qualcomm beats SkyWater Technology on 11 of the 14 factors compared between the two stocks.

About Qualcomm

Qualcomm Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies for use in wireless voice and data communications, networking, computing, multimedia, and position location products. The QTL segment grants licenses or provides rights to use portions of its intellectual property portfolio, which include various patent rights useful in the manufacture and sale of wireless products comprising products implementing CDMA2000, WCDMA, LTE and/or OFDMA-based 5G standards and their derivatives. The QSI segment invests in early-stage companies in various industries, including 5G, artificial intelligence, automotive, consumer, enterprise, cloud, IoT, and extended reality, and investments, including non-marketable equity securities and, to a lesser extent, marketable equity securities, and convertible debt instruments. It also provides development, and other services and related products to the United States government agencies and their contractors. The company was incorporated in 1985 and is headquartered in San Diego, California.

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.