Skyworks Solutions (NASDAQ: SWKS) and Alpha and Omega Semiconductor Limited (NASDAQ:AOSL) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Insider and Institutional Ownership

80.8% of Skyworks Solutions shares are held by institutional investors. Comparatively, 69.9% of Alpha and Omega Semiconductor Limited shares are held by institutional investors. 0.5% of Skyworks Solutions shares are held by company insiders. Comparatively, 21.7% of Alpha and Omega Semiconductor Limited shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Skyworks Solutions and Alpha and Omega Semiconductor Limited, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Skyworks Solutions 1 4 21 1 2.81
Alpha and Omega Semiconductor Limited 0 1 3 0 2.75

Skyworks Solutions presently has a consensus price target of $111.79, indicating a potential upside of 6.43%. Alpha and Omega Semiconductor Limited has a consensus price target of $26.00, indicating a potential upside of 50.20%. Given Alpha and Omega Semiconductor Limited’s higher probable upside, analysts clearly believe Alpha and Omega Semiconductor Limited is more favorable than Skyworks Solutions.

Volatility & Risk

Skyworks Solutions has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Alpha and Omega Semiconductor Limited has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500.

Profitability

This table compares Skyworks Solutions and Alpha and Omega Semiconductor Limited’s 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%
Alpha and Omega Semiconductor Limited 3.61% 4.76% 3.71%

Earnings & Valuation

This table compares Skyworks Solutions and Alpha and Omega Semiconductor Limited’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Skyworks Solutions $3.50 billion 5.51 $1.45 billion $5.21 20.16
Alpha and Omega Semiconductor Limited $383.34 million 1.08 $39.73 million $0.56 30.91

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

Dividends

Skyworks Solutions pays an annual dividend of $1.28 per share and has a dividend yield of 1.2%. Alpha and Omega Semiconductor Limited does not pay a dividend. Skyworks Solutions pays out 24.6% of its earnings in the form of a dividend.

Summary

Skyworks Solutions beats Alpha and Omega Semiconductor Limited on 13 of the 17 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 Alpha and Omega Semiconductor Limited

Alpha and Omega Semiconductor Limited is a designer, developer and global supplier of power semiconductors. The Company’s portfolio of power semiconductors includes approximately 1,600 products, as of June 30, 2016. The Company’s product portfolio consists of two categories: power discretes and power integrated circuits (ICs). The Company’s portfolio of products focuses high-volume applications, including personal computers, flat panel televisions, light-emitting diode (LED) lighting, smart phones, battery packs, consumer and industrial motor controls and power supplies for television, computers, servers and telecommunications equipment. The Company sells its products primarily to distributors in the Asia Pacific region, who in turn sell these products to end customers. The Company conducts its operations primarily in the United States, Hong Kong, China, Taiwan, Korea and Japan. Its products are applicable in desktop and tablet personal computers, flat panel displays and televisions.

Receive News & Stock Ratings for Skyworks Solutions Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Skyworks Solutions Inc. and related stocks with our FREE daily email newsletter.