Financial Review: Skyworks Solutions (SWKS) versus IXYS (IXYS)

Skyworks Solutions (NASDAQ: SWKS) and IXYS (NASDAQ:IXYS) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Skyworks Solutions and IXYS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Skyworks Solutions 27.67% 29.17% 26.27%
IXYS 6.99% 8.73% 6.04%

Valuation & Earnings

This table compares Skyworks Solutions and IXYS’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Skyworks Solutions $3.65 billion 5.09 $1.01 billion $5.41 18.71
IXYS $322.12 million 2.52 $21.34 million $0.73 33.70

Skyworks Solutions has higher revenue and earnings than IXYS. Skyworks Solutions is trading at a lower price-to-earnings ratio than IXYS, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

81.6% of Skyworks Solutions shares are held by institutional investors. Comparatively, 63.0% of IXYS shares are held by institutional investors. 0.5% of Skyworks Solutions shares are held by company insiders. Comparatively, 23.6% of IXYS shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Skyworks Solutions has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, IXYS has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.

Dividends

Skyworks Solutions pays an annual dividend of $1.28 per share and has a dividend yield of 1.3%. IXYS does not pay a dividend. Skyworks Solutions pays out 23.7% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and price targets for Skyworks Solutions and IXYS, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Skyworks Solutions 1 4 22 1 2.82
IXYS 0 0 0 0 N/A

Skyworks Solutions presently has a consensus target price of $116.36, suggesting a potential upside of 14.97%. Given Skyworks Solutions’ higher possible upside, equities analysts clearly believe Skyworks Solutions is more favorable than IXYS.

Summary

Skyworks Solutions beats IXYS on 13 of the 16 factors compared between the two stocks.

Skyworks Solutions Company Profile

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.

IXYS Company Profile

IXYS Corporation (IXYS) is a multi-market integrated semiconductor company. The Company is engaged in the development, manufacture and marketing of power semiconductors, mixed-signal integrated circuits (ICs), application specific integrated circuits (ASICs), microcontrollers, systems and radio frequency (RF) power semiconductors. Its power semiconductors are sold separately and are also packaged in high power modules that consist of multiple semiconductor dies. Its power metal-oxide-silicon (MOS) transistors operate at greater switching speeds than bipolar transistors. Its ICs address the demand for analog, mixed-signal and digital interface solutions in communication and other industries and include microcontrollers, mixed-signal application-specific ICs. RF power devices switch electricity at the high rates necessary to enable the amplification or reception of radio frequencies. It manufactures and sells laser diode drivers, high voltage pulse generators and modulators.

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