SiTime (NASDAQ:SITM – Get Free Report) and ESS Tech (NYSE:GWH – Get Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.
Profitability
This table compares SiTime and ESS Tech’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SiTime | -32.15% | -7.54% | -6.16% |
| ESS Tech | -1,217.22% | -321.20% | -114.71% |
Earnings and Valuation
This table compares SiTime and ESS Tech”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SiTime | $202.70 million | 38.48 | -$93.60 million | ($3.48) | -86.22 |
| ESS Tech | $6.30 million | 3.54 | -$86.22 million | ($6.27) | -0.24 |
ESS Tech has lower revenue, but higher earnings than SiTime. SiTime is trading at a lower price-to-earnings ratio than ESS Tech, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
SiTime has a beta of 2.35, indicating that its stock price is 135% more volatile than the S&P 500. Comparatively, ESS Tech has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.
Insider and Institutional Ownership
84.3% of SiTime shares are owned by institutional investors. Comparatively, 46.8% of ESS Tech shares are owned by institutional investors. 2.1% of SiTime shares are owned by company insiders. Comparatively, 1.7% of ESS Tech 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.
Analyst Recommendations
This is a summary of current ratings and recommmendations for SiTime and ESS Tech, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SiTime | 1 | 0 | 5 | 0 | 2.67 |
| ESS Tech | 1 | 7 | 0 | 0 | 1.88 |
SiTime currently has a consensus target price of $258.33, suggesting a potential downside of 13.90%. ESS Tech has a consensus target price of $2.63, suggesting a potential upside of 71.46%. Given ESS Tech’s higher possible upside, analysts plainly believe ESS Tech is more favorable than SiTime.
Summary
SiTime beats ESS Tech on 11 of the 14 factors compared between the two stocks.
About SiTime
SiTime Corporation designs, develops, and sells silicon timing systems solutions in Taiwan, Hong Kong, the United States, Singapore, and internationally. The company provides resonators and clock integrated circuits, and various types of oscillators. It serves various markets, including communications, datacenter, enterprise, automotive, industrial, internet of things, mobile, consumer, and aerospace and defense. The company sells its products directly to customers, distributors, and resellers. SiTime Corporation was incorporated in 2003 and is based in Santa Clara, California.
About ESS Tech
ESS Tech, Inc., an energy storage company, designs and produces iron flow batteries for commercial and utility-scale energy storage applications worldwide. It offers energy storage products, which include Energy Warehouse, a behind-the-meter solution; and Energy Center, a front-of-the-meter solution. The company was founded in 2011 and is headquartered in Wilsonville, Oregon.
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