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

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 24.6% of their earnings in the form of a dividend. Skyworks Solutions is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

80.8% of Skyworks Solutions shares are held by institutional investors. Comparatively, 59.5% of shares of all “Integrated Circuits” companies are held by institutional investors. 0.5% of Skyworks Solutions shares are held by insiders. Comparatively, 15.5% of shares of all “Integrated Circuits” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Skyworks Solutions has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Skyworks Solutions’ peers have a beta of 0.85, suggesting that their average share price is 15% less volatile than the S&P 500.

Profitability

This table compares Skyworks Solutions and its peers’ 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 -7.65% -8.70% -2.93%

Valuation & Earnings

This table compares Skyworks Solutions and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Skyworks Solutions $3.50 billion $1.45 billion 19.79
Skyworks Solutions Competitors $618.50 million $157.34 million 17.58

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

Analyst Ratings

This is a summary of recent recommendations for Skyworks Solutions and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Skyworks Solutions 1 4 21 1 2.81
Skyworks Solutions Competitors 88 452 949 66 2.64

Skyworks Solutions currently has a consensus target price of $111.58, indicating a potential upside of 8.25%. As a group, “Integrated Circuits” companies have a potential upside of 6.37%. Given Skyworks Solutions’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Skyworks Solutions is more favorable than its peers.

Summary

Skyworks Solutions beats its peers 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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