Skyworks Solutions (NASDAQ:SWKS – Get Free Report) and Monolithic Power Systems (NASDAQ:MPWR – Get Free Report) are both large-cap technology companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.
Institutional & Insider Ownership
85.4% of Skyworks Solutions shares are owned by institutional investors. Comparatively, 93.5% of Monolithic Power Systems shares are owned by institutional investors. 0.2% of Skyworks Solutions shares are owned by insiders. Comparatively, 3.6% of Monolithic Power Systems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Skyworks Solutions and Monolithic Power Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Skyworks Solutions | 4.35% | 9.70% | 6.83% |
| Monolithic Power Systems | 23.85% | 25.23% | 20.80% |
Analyst Ratings
This is a summary of recent recommendations and price targets for Skyworks Solutions and Monolithic Power Systems, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Skyworks Solutions | 3 | 16 | 4 | 1 | 2.12 |
| Monolithic Power Systems | 0 | 1 | 14 | 1 | 3.00 |
Skyworks Solutions presently has a consensus price target of $77.94, indicating a potential downside of 5.76%. Monolithic Power Systems has a consensus price target of $1,783.77, indicating a potential upside of 31.39%. Given Monolithic Power Systems’ stronger consensus rating and higher possible upside, analysts plainly believe Monolithic Power Systems is more favorable than Skyworks Solutions.
Earnings and Valuation
This table compares Skyworks Solutions and Monolithic Power Systems”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Skyworks Solutions | $3.96 billion | 3.14 | $172.10 million | $1.14 | 72.55 |
| Monolithic Power Systems | $3.74 billion | 17.71 | $621.48 million | $18.11 | 74.96 |
Monolithic Power Systems has lower revenue, but higher earnings than Skyworks Solutions. Skyworks Solutions is trading at a lower price-to-earnings ratio than Monolithic Power Systems, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Skyworks Solutions has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500. Comparatively, Monolithic Power Systems has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500.
Summary
Monolithic Power Systems beats Skyworks Solutions on 13 of the 14 factors compared between the two stocks.
About Skyworks Solutions
Skyworks Solutions, Inc. designs and manufactures semiconductor products that connect people, devices and networks. Its portfolio includes radio-frequency (RF) components and other analog and mixed-signal solutions used to transmit, receive and process signals. The company’s products include amplifiers, filters, switches and integrated RF modules, as well as connectivity solutions. They are used in smartphones and other mobile devices, automotive systems, broadband equipment, wireless infrastructure and Internet of Things applications.
About Monolithic Power Systems
Monolithic Power Systems, Inc. (MPS) designs, develops and markets semiconductor-based power management solutions. Its products include power management integrated circuits, DC-to-DC converters, power modules, battery chargers, LED drivers and motor drivers, which help control and convert electrical power in electronic systems. The company’s products serve a range of markets, including computing and data storage, automotive, communications, consumer electronics and industrial applications. MPS sells to customers around the world through direct sales and distribution channels.
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