SmartKem (NASDAQ:SMTK) and Synaptics (NASDAQ:SYNA) Head-To-Head Review

SmartKem (NASDAQ:SMTK) and Synaptics (NASDAQ:SYNA) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, earnings, risk, valuation and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations for SmartKem and Synaptics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SmartKem	1	0	0	0	1.00
Synaptics	1	1	7	1	2.80

Synaptics has a consensus price target of $89.00, suggesting a potential upside of 30.01%. Given Synaptics’ stronger consensus rating and higher probable upside, analysts plainly believe Synaptics is more favorable than SmartKem.

Profitability

This table compares SmartKem and Synaptics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SmartKem	N/A	-321.41%	-172.10%
Synaptics	-4.45%	4.32%	2.32%

Valuation & Earnings

This table compares SmartKem and Synaptics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SmartKem	$97,000.00	89.01	-$10.33 million	($2.68)	-0.71
Synaptics	$1.07 billion	2.49	-$47.80 million	($1.21)	-56.57

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

Risk & Volatility

SmartKem has a beta of 4.72, suggesting that its share price is 372% more volatile than the S&P 500. Comparatively, Synaptics has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500.

Insider & Institutional Ownership

99.4% of Synaptics shares are held by institutional investors. 8.7% of SmartKem shares are held by company insiders. Comparatively, 0.5% of Synaptics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Synaptics beats SmartKem on 9 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 Synaptics

Synaptics Incorporated develops, markets, and sells semiconductor products worldwide. The company offers AudioSmart for voice and audio processing; ConnectSmart for high-speed video/audio/data connectivity; DisplayLink for transmitting compressed video frames across low bandwidth connections; VideoSmart that enables set-top boxes, over-the-top, streaming devices, soundbars, surveillance cameras, and smart displays; and ImagingSmart solutions. It also provides Natural ID, a fingerprint ID product that is used in notebook personal computers (PCs), PC peripherals, automobiles, and other applications; TouchPad, a touch-sensitive pad that senses the position and movement of one or more fingers on its surface; SecurePad that integrates fingerprint sensor directly into the TouchPad area; ClickPad that offers a clickable mechanical design; and ForcePad. In addition, the company offers ClearPad, which enables users to interact directly with the display on mobile smartphones, tablets, and automobiles; ClearView products that provide advanced image processing and low power technology for displays on smartphones and tablets; and TouchView products, a touch controller and display driver integration product. Further, it provides TouchPad with a pointing stick in a single notebook computer enabling users to select their interface of choice; TouchStyk, a self-contained pointing stick module; ultra-low power edge artificial intelligence platform for battery powered wireless devices; wireless connectivity solutions comprising Wi-Fi, Bluetooth, global positioning system, global navigation satellite system, and ULE; and voice over IP and digital enhanced cordless telecommunications solutions. The company sells its products through direct sales, outside sales representatives, distributors, and resellers to mobile and PC OEMs; IoT OEMs; and automotive and consumer electronics manufacturers. The company was incorporated in 1986 and is headquartered in San Jose, California.