Smartkem (NASDAQ:SMTK – Get Free Report) and AXT (NASDAQ:AXTI – Get Free Report) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.
Profitability
This table compares Smartkem and AXT’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Smartkem | N/A | -167.89% | -111.60% |
| AXT | -11.70% | -5.27% | -3.31% |
Analyst Recommendations
This is a summary of current ratings and recommmendations for Smartkem and AXT, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Smartkem | 0 | 0 | 0 | 0 | 0.00 |
| AXT | 0 | 0 | 4 | 0 | 3.00 |
Valuation and Earnings
This table compares Smartkem and AXT”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Smartkem | $105,000.00 | 58.66 | -$8.50 million | ($3.36) | -0.41 |
| AXT | $96.03 million | 0.73 | -$11.62 million | ($0.43) | -3.58 |
Smartkem has higher earnings, but lower revenue than AXT. AXT is trading at a lower price-to-earnings ratio than Smartkem, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
49.5% of AXT shares are owned by institutional investors. 8.7% of Smartkem shares are owned by insiders. Comparatively, 8.8% of AXT shares are owned by 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
AXT beats Smartkem on 9 of the 13 factors compared between the two stocks.
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.
About AXT
AXT, Inc. designs, develops, manufactures, and distributes compound and single element semiconductor substrates. The company offers indium phosphide for use in data center connectivity using light/lasers, high-speed data transfer in data centers, 5G communications, fiber optic lasers and detectors, consumer devices, passive optical networks, silicon photonics, photonic integrated circuits, thermo-photovoltaics, RF amplifier and switching, infrared light-emitting diode (LEDS) motion control, lidar for robotics and autonomous vehicles, and infrared thermal imaging. It also provides semi-insulating gallium arsenide (GaAs) substrates for use in Wi-Fi and IoT devices, transistors, direct broadcast television, power amplifiers, satellite communications, and solar cells; and semi-conducting GaAs substrates that are used in LEDs, screen displays using micro-LEDs, printer head lasers and LEDs, 3-D sensing using VCSELs, data center communication using VCSELs, sensors for industrial robotics/near-infrared sensors, optical couplers, solar cells, night vision goggles, lidar for robotics and autonomous vehicles, and other lasers, as well as laser machining, cutting, and drilling. In addition, the company offers germanium substrates for use in multi-junction solar cells for satellites, optical sensors and detectors, terrestrial concentrated photo voltaic cells, infrared detectors, and carrier wafer for LED. Further, it provides 6N+ and 7N+ purified gallium, boron trioxide, gallium-magnesium alloy, pyrolytic boron nitride (pBN) crucibles, and pBN insulating parts. It sells its products through direct salesforce in the United States, China, and Europe, as well as through independent sales representatives and distributors in Japan, Taiwan, Korea, and internationally. The company was formerly known as American Xtal Technology, Inc. and changed its name to AXT, Inc. in July 2000. AXT, Inc. was incorporated in 1986 and is headquartered in Fremont, California.
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