SkyWater Technology (NASDAQ:SKYT – Get Free Report) and Viavi Solutions (NASDAQ:VIAV – Get Free Report) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.
Profitability
This table compares SkyWater Technology and Viavi Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SkyWater Technology | -4.75% | -12.40% | -2.47% |
| Viavi Solutions | -3.78% | 2.22% | 0.88% |
Valuation & Earnings
This table compares SkyWater Technology and Viavi Solutions”s 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 | 1.92 | -$30.76 million | ($0.35) | -33.00 |
| Viavi Solutions | $1.00 billion | 2.27 | -$25.80 million | ($0.17) | -60.11 |
Institutional & Insider Ownership
70.0% of SkyWater Technology shares are held by institutional investors. Comparatively, 95.5% of Viavi Solutions shares are held by institutional investors. 42.6% of SkyWater Technology shares are held by company insiders. Comparatively, 1.5% of Viavi Solutions shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings for SkyWater Technology and Viavi Solutions, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SkyWater Technology | 0 | 0 | 4 | 0 | 3.00 |
| Viavi Solutions | 1 | 5 | 2 | 1 | 2.33 |
SkyWater Technology currently has a consensus target price of $12.75, indicating a potential upside of 10.39%. Viavi Solutions has a consensus target price of $10.44, indicating a potential upside of 2.18%. Given SkyWater Technology’s stronger consensus rating and higher possible upside, research analysts clearly believe SkyWater Technology is more favorable than Viavi Solutions.
Risk & Volatility
SkyWater Technology has a beta of 3.43, meaning that its share price is 243% more volatile than the S&P 500. Comparatively, Viavi Solutions has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.
Summary
Viavi Solutions beats SkyWater Technology on 9 of the 15 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 Viavi Solutions
Viavi Solutions, Inc. engages in the provision of network test, monitoring, and assurance solutions for communications service providers, enterprises, network equipment manufacturers, government and avionics. It operates through the following segments: Network Enablement, Service Enablement, and Optical Security and Performance. The Network Enablement segment offers an integrated portfolio of testing solutions that access the network to perform build-out and maintenance tasks. The Service Enablement segment covers solutions and services primarily for communication service providers, and enterprises that deliver and/or operate broadband and IP networks (fixed and mobile) supporting voice, video, and data services as well as a wide range of applications. The Optical Security and Performance segment leverages its core optical coating technologies and volume manufacturing capability to design, manufacture, and sell products targeting anti-counterfeiting, consumer and industrial, government, healthcare, and other markets. The company was founded in 1979 and is headquartered in Chandler, AZ.
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