ANADIGICS (NASDAQ: ANAD) and Skyworks Solutions (NASDAQ:SWKS) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.

Institutional & Insider Ownership

80.0% 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 stock is poised for long-term growth.

Earnings and Valuation

This table compares ANADIGICS and Skyworks Solutions’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
ANADIGICS N/A N/A N/A ($0.27) -3.15
Skyworks Solutions $3.65 billion 5.55 $1.01 billion $5.41 20.38

Skyworks Solutions has higher revenue and earnings than ANADIGICS. ANADIGICS is trading at a lower price-to-earnings ratio than Skyworks Solutions, 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%. ANADIGICS does not pay a dividend. Skyworks Solutions pays out 23.7% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and price targets for ANADIGICS and Skyworks Solutions, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ANADIGICS 0 0 0 0 N/A
Skyworks Solutions 1 4 21 1 2.81

Skyworks Solutions has a consensus price target of $115.50, indicating a potential upside of 4.76%. Given Skyworks Solutions’ higher possible upside, analysts plainly believe Skyworks Solutions is more favorable than ANADIGICS.

Profitability

This table compares ANADIGICS and Skyworks Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ANADIGICS -49.89% -97.40% -69.35%
Skyworks Solutions 27.67% 29.17% 26.27%

Summary

Skyworks Solutions beats ANADIGICS on 11 of the 12 factors compared between the two stocks.

About ANADIGICS

ANADIGICS, Inc. is engaged in the designing and manufacturing of radio frequency (RF) semiconductor solutions for infrastructure and mobile communications and data transmission markets. The Company’s product portfolio includes line amplifiers, reverse path amplifiers, power amplifiers (PAs) and front-end integrated circuits (FEIC). The Company designs, develops, and manufactures RFIC’s primarily using GaAs compound semiconductor substrates with various process technologies, including metal semiconductor field effect transistor (MESFET), pseudomorphic high-electron-mobility transistor (pHEMT) and heterojunction bipolar transistor (HBT). The Company’s InGaP-Plus technology, combines InGaP HBT and pHEMT processes on a single substrate and integrates the PA function and the RF active switch function on the same die. Additionally, the Company offers VCSEL process technology. The Company fabricates its ICs in its six-inch diameter GaAs wafer fabrication facility.

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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