Reviewing NXP Semiconductors (NASDAQ:NXPI) and Smartkem (NASDAQ:SMTK)

NXP Semiconductors (NASDAQ:NXPI) and Smartkem (NASDAQ:SMTK) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for NXP Semiconductors and Smartkem, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NXP Semiconductors	0	3	16	0	2.84
Smartkem	0	0	0	0	0.00

NXP Semiconductors presently has a consensus target price of $267.00, indicating a potential upside of 33.07%. Given NXP Semiconductors’ stronger consensus rating and higher possible upside, equities analysts plainly believe NXP Semiconductors is more favorable than Smartkem.

Earnings & Valuation

This table compares NXP Semiconductors and Smartkem”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NXP Semiconductors	$12.61 billion	4.03	$2.51 billion	$9.73	20.62
Smartkem	$40,000.00	158.27	-$8.50 million	N/A	N/A

NXP Semiconductors has higher revenue and earnings than Smartkem.

Profitability

This table compares NXP Semiconductors and Smartkem’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NXP Semiconductors	19.90%	31.45%	12.56%
Smartkem	N/A	-167.89%	-111.60%

Institutional and Insider Ownership

90.5% of NXP Semiconductors shares are owned by institutional investors. 0.1% of NXP Semiconductors shares are owned by company insiders. Comparatively, 13.8% of Smartkem shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

NXP Semiconductors beats Smartkem on 9 of the 11 factors compared between the two stocks.

About NXP Semiconductors

NXP Semiconductors N.V. offers various semiconductor products. The company's product portfolio includes microcontrollers; application processors, including i.MX application processors, and i.MX 8 and 9 family of applications processors; communication processors; wireless connectivity solutions, such as near field communications, ultra-wideband, Bluetooth low-energy, Zigbee, and Wi-Fi and Wi-Fi/Bluetooth integrated SoCs; analog and interface devices; radio frequency power amplifiers; and security controllers, as well as semiconductor-based environmental and inertial sensors, including pressure, inertial, magnetic, and gyroscopic sensors. Its products are used in various applications, including automotive, industrial and Internet of Things, mobile, and communication infrastructure. The company markets its products to various original equipment manufacturers, contract manufacturers, and distributors. It operates in China, the Netherlands, the United States, Singapore, Germany, Japan, South Korea, Taiwan, and internationally. N.V. was incorporated in 2006 and is headquartered in Eindhoven, the Netherlands.

About Smartkem

SmartKem, Inc. engages in the development of materials and processes used to make organic thin-film transistors for the manufacture of flexible electronic. It focuses on Truflex semiconductor technology that deposits organic ink on a substrate. The company was founded on September 21, 2018 and is headquartered in Blackley, the United Kingdom.