Contrasting SkyWater Technology (NASDAQ:SKYT) and First Solar (NASDAQ:FSLR)

First Solar (NASDAQ:FSLR) and SkyWater Technology (NASDAQ:SKYT) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Risk and Volatility

First Solar has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500. Comparatively, SkyWater Technology has a beta of 3.97, meaning that its share price is 297% more volatile than the S&P 500.

Earnings & Valuation

This table compares First Solar and SkyWater Technology’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Solar	$3.32 billion	8.83	$830.78 million	$9.54	28.68
SkyWater Technology	$286.68 million	1.34	-$30.76 million	($0.69)	-11.74

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for First Solar and SkyWater Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Solar	0	3	22	0	2.88
SkyWater Technology	0	0	4	0	3.00

First Solar currently has a consensus target price of $265.72, indicating a potential downside of 2.88%. SkyWater Technology has a consensus target price of $13.25, indicating a potential upside of 63.58%. Given SkyWater Technology’s stronger consensus rating and higher possible upside, analysts plainly believe SkyWater Technology is more favorable than First Solar.

Insider and Institutional Ownership

92.1% of First Solar shares are held by institutional investors. Comparatively, 70.0% of SkyWater Technology shares are held by institutional investors. 0.6% of First Solar shares are held by insiders. Comparatively, 42.6% 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 will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Solar	28.75%	16.24%	10.61%
SkyWater Technology	-10.73%	-32.59%	-6.66%

Summary

First Solar beats SkyWater Technology on 10 of the 14 factors compared between the two stocks.

About First Solar

First Solar, Inc., a solar technology company, provides photovoltaic (PV) solar energy solutions in the United States, France, Japan, Chile, and internationally. The company manufactures and sells PV solar modules with a thin film semiconductor technology that provides a lower-carbon alternative to conventional crystalline silicon PV solar modules. It designs, manufactures, and sells cadmium telluride solar modules that converts sunlight into electricity. The company's residual business operations include project development activities, operations and maintenance services, and the sale of PV solar power systems to third-party customers. It serves developers and operators of systems, utilities, independent power producers, commercial and industrial companies, and other system owners. The company was formerly known as First Solar Holdings, Inc. and changed its name to First Solar, Inc. in 2006. First Solar, Inc. was founded in 1999 and is headquartered in Tempe, Arizona.

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.