Critical Comparison: SmartKem (NASDAQ:SMTK) and Amkor Technology (NASDAQ:AMKR)

SmartKem (NASDAQ:SMTK) and Amkor Technology (NASDAQ:AMKR) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.

Risk and Volatility

SmartKem has a beta of 4.82, suggesting that its share price is 382% more volatile than the S&P 500. Comparatively, Amkor Technology has a beta of 2.02, suggesting that its share price is 102% more volatile than the S&P 500.

Profitability

This table compares SmartKem and Amkor Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SmartKem	N/A	-321.41%	-172.10%
Amkor Technology	4.77%	7.26%	4.14%

Institutional & Insider Ownership

42.8% of Amkor Technology shares are owned by institutional investors. 8.7% of SmartKem shares are owned by company insiders. Comparatively, 26.9% of Amkor Technology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares SmartKem and Amkor Technology”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SmartKem	$80,000.00	96.48	-$10.33 million	($2.68)	-0.63
Amkor Technology	$6.45 billion	1.33	$354.01 million	$1.25	27.82

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

Analyst Ratings

This is a summary of current ratings and target prices for SmartKem and Amkor Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SmartKem	1	0	0	0	1.00
Amkor Technology	0	7	4	1	2.50

Amkor Technology has a consensus price target of $29.63, indicating a potential downside of 14.82%. Given Amkor Technology’s stronger consensus rating and higher probable upside, analysts clearly believe Amkor Technology is more favorable than SmartKem.

Summary

Amkor Technology beats SmartKem on 13 of the 15 factors compared between the two stocks.

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.

About Amkor Technology

Amkor Technology, Inc. provides outsourced semiconductor packaging and test services in the United States, Japan, Europe, the Middle East, Africa, and the Asia Pacific. It offers turnkey packaging and test services, including semiconductor wafer bump, wafer probe, wafer back-grind, package design, packaging, system-level and final test, and drop shipment services; flip chip scale package products for smartphones, tablets, and other mobile consumer electronic devices; flip chip stacked chip scale packages that are used to stack memory digital baseband, and as applications processors in mobile devices; flip-chip ball grid array packages for various networking, storage, computing, automotive, and consumer applications; and memory products for system memory or platform data storage. The company also provides wafer-level CSP packages for power management, transceivers, sensors, wireless charging, codecs, radar, and specialty silicon; wafer-level fan-out packages used in power management, transceivers, radar, and specialty silicon; silicon wafer integrated fan-out technology that replaces a laminate substrate with a thinner structure; leadframe packages for electronic devices and mixed-signal applications; and substrate-based wirebond packages used to connect a die to a substrate. In addition, it offers micro-electro-mechanical systems packages that are miniaturized mechanical and electromechanical devices; and advanced system-in-package modules used in radio frequency and front end modules, basebands, connectivity, fingerprint sensors, display and touch screen drivers, sensors and MEMS, and NAND memory and solid-state drives. Further, the company provides wafer, package, and system level test services, as well as burn-in test and test development services. It serves integrated device manufacturers, fabless semiconductor companies, original equipment manufacturers, and contract foundries. The company was founded in 1968 and is headquartered in Tempe, Arizona.