SkyWater Technology (NASDAQ:SKYT) & Rambus (NASDAQ:RMBS) Head-To-Head Analysis

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

Insider and Institutional Ownership

88.5% of Rambus shares are owned by institutional investors. Comparatively, 70.0% of SkyWater Technology shares are owned by institutional investors. 1.0% of Rambus shares are owned by insiders. Comparatively, 37.9% of SkyWater Technology shares are owned 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 current recommendations and price targets for Rambus and SkyWater Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rambus	0	1	6	2	3.11
SkyWater Technology	1	1	5	0	2.57

Rambus currently has a consensus price target of $108.14, suggesting a potential upside of 13.10%. SkyWater Technology has a consensus price target of $21.50, suggesting a potential upside of 41.07%. Given SkyWater Technology’s higher probable upside, analysts clearly believe SkyWater Technology is more favorable than Rambus.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rambus	33.72%	17.73%	15.20%
SkyWater Technology	36.36%	-4.96%	-1.05%

Valuation & Earnings

This table compares Rambus and SkyWater Technology”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rambus	$678.49 million	15.17	$179.82 million	$2.11	45.31
SkyWater Technology	$342.27 million	2.16	-$6.79 million	$2.58	5.91

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

Risk & Volatility

Rambus has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500. Comparatively, SkyWater Technology has a beta of 3.49, suggesting that its stock price is 249% more volatile than the S&P 500.

Summary

Rambus beats SkyWater Technology on 10 of the 15 factors compared between the two stocks.

About Rambus

Rambus Inc. provides semiconductor products in the United States, South Korea, Singapore, and internationally. The company offers DDR memory interface chips, including DDR5 and DDR4 memory interface chips to module manufacturers, OEMs, and hyperscalers; silicon IP, such as interface and security IP solutions that move and protect data in advanced data center, government, and automotive applications; and interface IP solutions for high-speed memory and chip-to-chip digital controller IP. It also provides a portfolios of security IP solutions, including crypto cores, hardware roots of trust, high-speed protocol engines, and chip provisioning technologies; and portfolio of patents that covers memory architecture, high-speed serial links, and security products. It markets its products and services through its direct sales force and distributors. Rambus Inc. was incorporated in 1990 and is headquartered in San Jose, 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.