Critical Comparison: Skyworks Solutions (NASDAQ:SWKS) and Its Competitors

Skyworks Solutions (NASDAQ: SWKS) is one of 24 publicly-traded companies in the “Integrated Circuits” industry, but how does it compare to its rivals? We will compare Skyworks Solutions to similar companies based on the strength of its dividends, institutional ownership, risk, earnings, analyst recommendations, profitability and valuation.

Risk and Volatility

Skyworks Solutions has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, Skyworks Solutions’ rivals have a beta of 0.81, meaning that their average share price is 19% less volatile than the S&P 500.

Earnings & Valuation

This table compares Skyworks Solutions and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Skyworks Solutions $3.50 billion $1.45 billion 20.71
Skyworks Solutions Competitors $619.23 million $157.39 million 19.08

Skyworks Solutions has higher revenue and earnings than its rivals. Skyworks Solutions is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

80.9% of Skyworks Solutions shares are owned by institutional investors. Comparatively, 59.9% of shares of all “Integrated Circuits” companies are owned by institutional investors. 0.5% of Skyworks Solutions shares are owned by company insiders. Comparatively, 15.5% of shares of all “Integrated Circuits” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Skyworks Solutions and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Skyworks Solutions 27.86% 28.67% 26.04%
Skyworks Solutions Competitors -7.63% -8.60% -2.87%

Dividends

Skyworks Solutions pays an annual dividend of $1.28 per share and has a dividend yield of 1.2%. Skyworks Solutions pays out 24.6% of its earnings in the form of a dividend. As a group, “Integrated Circuits” companies pay a dividend yield of 0.7% and pay out 24.8% of their earnings in the form of a dividend. Skyworks Solutions is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Skyworks Solutions and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Skyworks Solutions 1 4 21 1 2.81
Skyworks Solutions Competitors 71 400 934 58 2.67

Skyworks Solutions presently has a consensus price target of $112.21, indicating a potential upside of 3.98%. As a group, “Integrated Circuits” companies have a potential downside of 0.83%. Given Skyworks Solutions’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Skyworks Solutions is more favorable than its rivals.

Summary

Skyworks Solutions beats its rivals on 12 of the 15 factors compared.

About Skyworks Solutions

Skyworks Solutions Inc. designs, develops, manufactures and markets semiconductor products, including intellectual property. The Company’s analog semiconductors are connecting people, places, and things, spanning a number of new and unimagined applications within the automotive, broadband, cellular infrastructure, connected home, industrial, medical, military, smartphone, tablet and wearable markets. Its geographical segments include the United States, Other Americas, China, Taiwan, South Korea, Other Asia-Pacific, Europe, Middle East and Africa. It operates throughout the world with engineering, manufacturing, sales and service facilities throughout Asia, Europe and North America. It is engaged with key original equipment manufacturers (OEM), smartphone providers and baseband reference design partners. Its product portfolio consists of various solutions, including amplifiers, attenuators, detectors, diodes, filters, front-end modules, hybrid, mixers, switches, and modulators.

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