Comparing Coda Octopus Group (NASDAQ:CODA) and SkyWater Technology (NASDAQ:SKYT)

SkyWater Technology (NASDAQ:SKYT) and Coda Octopus Group (NASDAQ:CODA) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.

Volatility & Risk

SkyWater Technology has a beta of 3.52, suggesting that its share price is 252% more volatile than the S&P 500. Comparatively, Coda Octopus Group has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SkyWater Technology	26.90%	-8.42%	-1.81%
Coda Octopus Group	15.55%	7.36%	6.77%

Institutional & Insider Ownership

70.0% of SkyWater Technology shares are held by institutional investors. Comparatively, 20.1% of Coda Octopus Group shares are held by institutional investors. 37.9% of SkyWater Technology shares are held by company insiders. Comparatively, 21.8% of Coda Octopus Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for SkyWater Technology and Coda Octopus Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SkyWater Technology	1	5	1	0	2.00
Coda Octopus Group	0	1	1	0	2.50

SkyWater Technology presently has a consensus target price of $32.00, suggesting a potential upside of 8.62%. Given SkyWater Technology’s higher possible upside, equities analysts clearly believe SkyWater Technology is more favorable than Coda Octopus Group.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SkyWater Technology	$442.14 million	3.23	$118.92 million	$2.43	12.12
Coda Octopus Group	$26.56 million	5.75	$4.13 million	$0.36	37.67

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

Summary

SkyWater Technology beats Coda Octopus Group on 8 of the 13 factors compared between the two stocks.

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.

About Coda Octopus Group

Coda Octopus Group, Inc., together with its subsidiaries, develops, sells, and rentals underwater technologies and equipment for real time 3D imaging, mapping, defense, and survey applications in the Americas, Europe, Australia, Asia, the Middle East, and Africa. The company operates through two segments, Marine Engineering Business and Marine Technology Business. The company's solutions include geophysical systems; GNSS-aided navigation systems (attitude and positioning systems); real time volumetric imaging sonar products; and diver augmented vision display systems. It also offers GeoSurvey, a software and hardware package for acquisition and processing of sidescan sonar and sub-bottom profiler data in oil and gas companies; DA4G, a geophysical hardware; and Survey Engine, a software product that provides post-processing solutions for sidescan sonar and sub-bottom profiler data. In addition, the company offers 3D/4D/5D/6D imaging sonar technology under the Echoscope and Echoscope PIPE name; diving technology under the CodaOctopus DAVD; and operates as a sub-contractor for defense contractors, as well as supplies sub-assemblies for broader mission critical defense systems. It markets and sells its technology solutions for the subsea and underwater markets. Coda Octopus Group, Inc. was founded in 1994 and is headquartered in Orlando, Florida.