Comparing Rohm (OTCMKTS:ROHCY) & SkyWater Technology (NASDAQ:SKYT)
by Sarita Garza · The Markets DailyRohm (OTCMKTS:ROHCY – Get Free Report) and SkyWater Technology (NASDAQ:SKYT – Get Free Report) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.
Institutional & Insider Ownership
70.0% of SkyWater Technology shares are held by institutional investors. 22.6% of SkyWater Technology shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
Rohm has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, SkyWater Technology has a beta of 3.39, suggesting that its share price is 239% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for Rohm and SkyWater Technology, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rohm | 0 | 1 | 1 | 0 | 2.50 |
| SkyWater Technology | 1 | 6 | 1 | 0 | 2.00 |
SkyWater Technology has a consensus price target of $32.00, indicating a potential downside of 1.42%. Given SkyWater Technology’s higher probable upside, analysts clearly believe SkyWater Technology is more favorable than Rohm.
Profitability
This table compares Rohm and SkyWater Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rohm | -29.85% | 4.23% | 2.63% |
| SkyWater Technology | 21.04% | -7.88% | -1.93% |
Earnings & Valuation
This table compares Rohm and SkyWater Technology”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rohm | $3.20 billion | 3.58 | -$1.05 billion | ($2.57) | -11.52 |
| SkyWater Technology | $442.14 million | 3.61 | $118.91 million | $2.33 | 13.93 |
SkyWater Technology has lower revenue, but higher earnings than Rohm. Rohm is trading at a lower price-to-earnings ratio than SkyWater Technology, indicating that it is currently the more affordable of the two stocks.
Summary
SkyWater Technology beats Rohm on 9 of the 13 factors compared between the two stocks.
About Rohm
ROHM Co., Ltd. manufactures and sells electronic components worldwide. The company operates through three segments: LSI, Semiconductor Devices, and Modules. It provides ICs comprising memory, amplifiers and linear, power management, motor/actuator drivers, resistors, clocks and timers, switches and multiplexers, logic, data converters, sensors and MEMS, display drivers, interfaces, wireless LSIs, audio and video products, speech synthesis LSI, and microcontrollers. The company also offers discrete semiconductor products, such as MOSFETs, bipolar transistors, and diodes; power devices, including power transistors and diodes, SiC power devices, IGBT, and IPM; modules, including optical modules, wireless communication modules, wireless charger modules, and print heads; and opto devices comprising LEDs, LED displays, laser diodes, and optical sensors, as well as foundry services, including thin-film piezoelectric MEMS, wafers, and WL-CSP. Its products are used in industry, automotive, consumer electronics, and telecommunications applications. The company was incorporated in 1940 and is headquartered in Kyoto, Japan.
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.