Cirrus Logic (CRUS) and Skyworks Solutions (SWKS) Financial Review

Cirrus Logic (NASDAQ: CRUS) and Skyworks Solutions (NASDAQ:SWKS) are both mid-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Analyst Ratings

This is a summary of recent ratings for Cirrus Logic and Skyworks Solutions, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cirrus Logic 1 3 8 0 2.58
Skyworks Solutions 2 4 19 1 2.73

Cirrus Logic currently has a consensus price target of $69.18, indicating a potential upside of 25.49%. Skyworks Solutions has a consensus price target of $109.83, indicating a potential upside of 6.44%. Given Cirrus Logic’s higher possible upside, research analysts plainly believe Cirrus Logic is more favorable than Skyworks Solutions.

Risk & Volatility

Cirrus Logic has a beta of 0.01, suggesting that its share price is 99% less volatile than the S&P 500. Comparatively, Skyworks Solutions has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Cirrus Logic 17.38% 26.71% 20.92%
Skyworks Solutions 27.86% 28.67% 26.04%

Earnings and Valuation

This table compares Cirrus Logic and Skyworks Solutions’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cirrus Logic $1.60 billion 2.21 $413.94 million $4.18 13.19
Skyworks Solutions $3.50 billion 5.42 $1.45 billion $5.21 19.80

Skyworks Solutions has higher revenue and earnings than Cirrus Logic. Cirrus Logic 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%. Cirrus Logic does not pay a dividend. Skyworks Solutions pays out 24.6% of its earnings in the form of a dividend.

Institutional and Insider Ownership

94.2% of Cirrus Logic shares are owned by institutional investors. Comparatively, 81.2% of Skyworks Solutions shares are owned by institutional investors. 1.9% of Cirrus Logic shares are owned by insiders. Comparatively, 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 is poised for long-term growth.

Summary

Skyworks Solutions beats Cirrus Logic on 13 of the 17 factors compared between the two stocks.

About Cirrus Logic

Cirrus Logic, Inc. is engaged in providing integrated circuits (ICs) for audio and voice signal processing applications. The Company develops analog and mixed-signal ICs for a range of customers. The Company offers two product lines: Portable Audio, and Non-Portable Audio and Other. The Company’s primary facility housing engineering, sales and marketing, and administration functions is located in Austin, Texas. The Company offers products through both direct and indirect sales channels across the world. The Company’s portable audio products include analog and mixed-signal components designed for mobile devices including smartphones, tablets, digital headsets, wearables, smart accessories and portable media players. Its non-portable audio and other products include analog and mixed-signal components targeting the consumer market, including smart home applications, and the automotive, energy and industrial markets.

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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