Skyworks Solutions (NASDAQ:SWKS – Get Free Report) and Monolithic Power Systems (NASDAQ:MPWR – Get Free Report) are both large-cap technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.
Earnings and Valuation
This table compares Skyworks Solutions and Monolithic Power Systems”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Skyworks Solutions | $3.96 billion | 3.09 | $477.10 million | $1.93 | 42.08 |
| Monolithic Power Systems | $2.79 billion | 19.77 | $621.48 million | $18.11 | 62.48 |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Skyworks Solutions and Monolithic Power Systems, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Skyworks Solutions | 3 | 17 | 4 | 0 | 2.04 |
| Monolithic Power Systems | 0 | 1 | 14 | 1 | 3.00 |
Skyworks Solutions currently has a consensus target price of $77.28, suggesting a potential downside of 4.84%. Monolithic Power Systems has a consensus target price of $1,783.77, suggesting a potential upside of 57.66%. Given Monolithic Power Systems’ stronger consensus rating and higher possible upside, analysts plainly believe Monolithic Power Systems is more favorable than Skyworks Solutions.
Institutional & Insider Ownership
85.4% of Skyworks Solutions shares are held by institutional investors. Comparatively, 93.5% of Monolithic Power Systems shares are held by institutional investors. 0.2% of Skyworks Solutions shares are held by company insiders. Comparatively, 3.6% of Monolithic Power Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Skyworks Solutions and Monolithic Power Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Skyworks Solutions | 4.35% | 9.70% | 6.83% |
| Monolithic Power Systems | 23.85% | 25.23% | 20.80% |
Risk & Volatility
Skyworks Solutions has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500. Comparatively, Monolithic Power Systems has a beta of 1.71, meaning that its stock price is 71% more volatile than the S&P 500.
Summary
Monolithic Power Systems beats Skyworks Solutions on 13 of the 15 factors compared between the two stocks.
About Skyworks Solutions
Skyworks Solutions, Inc., together with its subsidiaries, designs, develops, manufactures, and markets proprietary semiconductor products in the United States, China, South Korea, Taiwan, Europe, the Middle East, Africa, and the rest of Asia-Pacific. Its product portfolio includes amplifiers, antenna tuners, attenuators, automotive tuners and digital radios, DC/DC converters, demodulators, detectors, diodes, wireless analog system on chip products, directional couplers, diversity receive modules, filters, front-end modules, hybrids, light emitting diode drivers, low noise amplifiers, mixers, modulators, optocouplers/optoisolators, phase locked loops, phase shifters, power dividers/combiners, power over ethernet, power isolators, receivers, switches, synthesizers, timing devices, voltage controlled oscillators/synthesizers, and voltage regulators. The company products are the used in aerospace, automotive, broadband, cellular infrastructure, connected home, defense, entertainment and gaming, industrial, medical, military, smartphone, tablet, and wearable markets. It sells its products through direct sales force, electronic component distributors, and independent sales representatives. Skyworks Solutions, Inc. was founded in 1962 and is based in Irvine, California.
About Monolithic Power Systems
Monolithic Power Systems, Inc. engages in the design, development, marketing, and sale of semiconductor-based power electronics solutions for the storage and computing, automotive, enterprise data, consumer, communications, and industrial markets. The company provides direct current (DC) to DC integrated circuits (ICs) that are used to convert and control voltages of various electronic systems, such as cloud-based CPU servers, server artificial intelligence applications, storage applications, commercial notebooks, digital cockpit, power sources, home appliances, 4G and 5G infrastructure, and satellite communications applications. It offers lighting control ICs for backlighting that are used in systems, which provide the light source for LCD panels in computers and notebooks, monitors, car navigation systems, and televisions, as well as for general illumination products. The company sells its products through third-party distributors, value-added resellers, directly to original equipment manufacturers, original design manufacturers, electronic manufacturing service providers, and other end customers. It serves China, Taiwan, South Korea, Europe, Japan, Southeast Asia, the United States, and internationally. Monolithic Power Systems, Inc. was incorporated in 1997 and is headquartered in Kirkland, Washington.
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