United Microelectronics (NYSE:UMC – Get Free Report) and SmartKem (NASDAQ:SMTK – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for United Microelectronics and SmartKem, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| United Microelectronics | 1 | 4 | 0 | 1 | 2.17 |
| SmartKem | 1 | 0 | 0 | 0 | 1.00 |
Risk and Volatility
United Microelectronics has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, SmartKem has a beta of 4.72, suggesting that its share price is 372% more volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| United Microelectronics | $7.09 billion | 2.67 | $1.49 billion | $0.49 | 15.40 |
| SmartKem | $80,000.00 | 117.47 | -$10.33 million | ($2.68) | -0.77 |
United Microelectronics has higher revenue and earnings than SmartKem. SmartKem is trading at a lower price-to-earnings ratio than United Microelectronics, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares United Microelectronics and SmartKem’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| United Microelectronics | 16.71% | 11.05% | 7.15% |
| SmartKem | N/A | -321.41% | -172.10% |
Insider and Institutional Ownership
5.1% of United Microelectronics shares are owned by institutional investors. 8.0% of United Microelectronics shares are owned by company insiders. Comparatively, 8.7% of SmartKem shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
United Microelectronics beats SmartKem on 10 of the 13 factors compared between the two stocks.
About United Microelectronics
United Microelectronics Corporation operates as a semiconductor wafer foundry in Taiwan, China, Hong Kong, Japan, Korea, the United States, Europe, and internationally. The company provides circuit design, mask tooling, wafer fabrication, and assembly and testing services. It serves fabless design companies and integrated device manufacturers. United Microelectronics Corporation was incorporated in 1980 and is headquartered in Hsinchu City, Taiwan.
About SmartKem
SmartKem, Inc. develops electronics transistors using its proprietary advanced semiconductor materials. Its technology can be used in a range of applications including next generation MicroLED, LCD and AMOLED displays, as well as advanced computer and AI chip packaging, and a new type of sensor. The company was founded on September 21, 2018 and is headquartered in Blackley, the United Kingdom.
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