Contrasting Skyworks Solutions (SWKS) and SemiLEDS Corporation (LEDS)
Skyworks Solutions (NASDAQ: SWKS) and SemiLEDS Corporation (NASDAQ:LEDS) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.
Earnings & Valuation
This table compares Skyworks Solutions and SemiLEDS Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Skyworks Solutions||$3.50 billion||5.54||$1.45 billion||$5.21||20.26|
|SemiLEDS Corporation||$8.53 million||0.74||-$4.18 million||($5.04)||-0.35|
Skyworks Solutions has higher revenue and earnings than SemiLEDS Corporation. SemiLEDS Corporation is trading at a lower price-to-earnings ratio than Skyworks Solutions, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
80.8% of Skyworks Solutions shares are owned by institutional investors. Comparatively, 2.1% of SemiLEDS Corporation shares are owned by institutional investors. 0.5% of Skyworks Solutions shares are owned by company insiders. Comparatively, 40.1% of SemiLEDS Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
Skyworks Solutions has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, SemiLEDS Corporation has a beta of 2.24, suggesting that its stock price is 124% more volatile than the S&P 500.
This table compares Skyworks Solutions and SemiLEDS Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Skyworks Solutions pays an annual dividend of $1.28 per share and has a dividend yield of 1.2%. SemiLEDS Corporation does not pay a dividend. Skyworks Solutions pays out 24.6% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and target prices for Skyworks Solutions and SemiLEDS Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Skyworks Solutions presently has a consensus price target of $109.83, indicating a potential upside of 4.03%. Given Skyworks Solutions’ higher possible upside, equities analysts plainly believe Skyworks Solutions is more favorable than SemiLEDS Corporation.
Skyworks Solutions beats SemiLEDS Corporation on 12 of the 15 factors compared between the two stocks.
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.
About SemiLEDS Corporation
SemiLEDs Corporation develops, manufactures and sells light emitting diode (LED) chips and LED components. The Company’s products are used primarily for general lighting applications, including street lights and commercial, industrial and residential lighting. Its LED chips may also be used in specialty industrial applications, such as ultraviolet (UV), curing of polymers, LED light therapy in medical/cosmetic applications, counterfeit detection, LED lighting for horticulture applications, architectural lighting and entertainment lighting. The Company produces a range of blue, white, green and UV LED chips, including its Enhanced Vertical (EV) LED product series, ranging from chip sizes of approximately 380 microns (um) by 380um to 1,520um by 1,520um. It designs, assembles and sells lighting fixtures and systems for general lighting applications, including commercial, residential and industrial lighting. Its lighting products consist primarily of LED luminaries and LED retrofits.
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