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SCKT vs SMTK

SCKT
Socket Mobile, Inc.
BEARISH
Price
$0.93
Market Cap
$7.6M
Sector
Technology
AI Confidence
90%
SMTK
SmartKem, Inc.
BEARISH
Price
$0.34
Market Cap
$7.2M
Sector
Technology
AI Confidence
95%

Valuation

P/E Ratio
SCKT
--
SMTK
--
Forward P/E
SCKT
18.6
SMTK
--
P/B Ratio
SCKT
1.74
SMTK
-0.59
P/S Ratio
SCKT
0.51
SMTK
10.28
EV/EBITDA
SCKT
-7.08
SMTK
-0.65

Profitability

Gross Margin
SCKT
49.66%
SMTK
60.98%
Operating Margin
SCKT
-14.87%
SMTK
-382.53%
Profit Margin
SCKT
-95.36%
SMTK
0.0%
ROE
SCKT
-128.16%
SMTK
-791.04%
ROA
SCKT
-9.63%
SMTK
-145.33%

Growth

Revenue Growth
SCKT
-18.0%
SMTK
1235.7%
Earnings Growth
SCKT
--
SMTK
--

Financial Health

Debt/Equity
SCKT
1.82
SMTK
--
Current Ratio
SCKT
1.02
SMTK
0.25
Quick Ratio
SCKT
0.44
SMTK
0.2

Dividends

Dividend Yield
SCKT
--
SMTK
--
Payout Ratio
SCKT
0.0%
SMTK
0.0%

AI Verdict

SCKT BEARISH

SCKT exhibits a fragile financial profile, anchored by a Piotroski F-Score of 4/9, which places it in the 'stable' but lower-tier category. The company is facing a critical combination of shrinking top-line revenue (-18% YoY) and severe bottom-line erosion, evidenced by a profit margin of -95.36%. Liquidity is a primary concern with a Quick Ratio of 0.44, suggesting an inability to cover short-term obligations without selling inventory. Despite a low Price/Sales ratio, the lack of growth and high debt-to-equity ratio (1.82) make the current valuation unsustainable.

Strengths
Reasonable Gross Margin (49.66%) indicating core product viability
Low Price-to-Sales ratio (0.51) relative to sector
Positive short-term price momentum (1-month change +6.9%)
Risks
Severe negative profit margins (-95.36%)
Declining revenue growth (-18% YoY and -17.95% Q/Q)
Poor liquidity position (Quick Ratio 0.44)
SMTK BEARISH

SMTK exhibits critical financial distress, highlighted by a Piotroski F-Score of 1/9 and a negative Price-to-Book ratio of -0.59, indicating negative shareholder equity. While the company shows explosive revenue growth of 1235.70%, this is overshadowed by a catastrophic operating margin of -382.53% and a current ratio of 0.25, signaling a severe liquidity crisis. The lack of an Altman Z-Score and Graham Number is a direct result of the company's negative earnings and equity. Overall, the firm is in a high-risk state with a significant probability of insolvency or massive shareholder dilution.

Strengths
Exceptional YoY revenue growth (1235.70%)
Strong gross margin (60.98%) suggesting a viable product value proposition
Operating in the high-demand semiconductor equipment sector
Risks
Negative equity (Price/Book -0.59) indicating insolvency risk
Severe liquidity shortage with a current ratio of 0.25
Unsustainable burn rate with operating margins at -382.53%

Compare Another Pair

SCKT vs SMTK: Head-to-Head Comparison

This page compares Socket Mobile, Inc. (SCKT) and SmartKem, Inc. (SMTK) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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