Multi-Fineline Electronix (NASDAQ: MFLX) and Skyworks Solutions (NASDAQ:SWKS) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.

Dividends

Skyworks Solutions pays an annual dividend of $1.28 per share and has a dividend yield of 1.2%. Multi-Fineline Electronix does not pay a dividend. Skyworks Solutions pays out 24.6% of its earnings in the form of a dividend.

Volatility & Risk

Multi-Fineline Electronix has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Skyworks Solutions has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Multi-Fineline Electronix and Skyworks Solutions, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Multi-Fineline Electronix 0 0 0 0 N/A
Skyworks Solutions 1 4 21 1 2.81

Skyworks Solutions has a consensus target price of $111.58, indicating a potential upside of 3.81%. Given Skyworks Solutions’ higher probable upside, analysts plainly believe Skyworks Solutions is more favorable than Multi-Fineline Electronix.

Earnings and Valuation

This table compares Multi-Fineline Electronix and Skyworks Solutions’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Multi-Fineline Electronix N/A N/A N/A $1.02 22.64
Skyworks Solutions $3.50 billion 5.64 $1.45 billion $5.21 20.63

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

Profitability

This table compares Multi-Fineline Electronix and Skyworks Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Multi-Fineline Electronix -9.63% -10.97% -8.10%
Skyworks Solutions 27.86% 28.67% 26.04%

Insider & Institutional Ownership

80.8% of Skyworks Solutions shares are owned by institutional investors. 0.5% of Skyworks Solutions shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Skyworks Solutions beats Multi-Fineline Electronix on 11 of the 13 factors compared between the two stocks.

About Multi-Fineline Electronix

Multi-Fineline Electronix, Inc. is engaged in the engineering, design and manufacture of flexible circuit boards along with related component assemblies. The Company provides flexible printed circuits and value-added component assembly solutions to the electronics industry. The Company provides its solutions to original equipment manufacturers (OEMs) and to electronic manufacturing services (EMS) providers. The Company offers products in a range of sectors, including smartphones, tablets, computer/data storage, portable bar code scanners, personal computers, wearables and other consumer electronic devices. The Company’s products include flexible printed circuits, flexible printed circuit assemblies and mechanical integration of flexible printed circuit assemblies. The Company has facilities in Irvine, California; Suzhou, China, and Singapore. The Company operates in the United States, China, Singapore and Other, which includes Malaysia, Korea and the United Kingdom.

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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