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

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cirrus Logic $1.54 billion 2.64 $387.16 million $3.78 16.84
Skyworks Solutions $3.35 billion 5.81 $1.39 billion $4.86 21.69

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.

Volatility and Risk

Cirrus Logic has a beta of 0.03, meaning that its share price is 97% less volatile than the S&P 500. Comparatively, Skyworks Solutions has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.

Insider and Institutional Ownership

94.9% of Cirrus Logic shares are held by institutional investors. Comparatively, 81.3% of Skyworks Solutions shares are held by institutional investors. 1.9% of Cirrus Logic shares are held by company insiders. Comparatively, 0.5% of Skyworks Solutions shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

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 16.31% 26.32% 19.76%
Skyworks Solutions 27.27% 28.00% 25.32%

Analyst Ratings

This is a breakdown of recent ratings and target prices 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 18 1 2.72

Cirrus Logic presently has a consensus price target of $69.18, indicating a potential upside of 8.66%. Skyworks Solutions has a consensus price target of $103.00, indicating a potential downside of 2.29%. Given Cirrus Logic’s higher probable upside, equities analysts plainly believe Cirrus Logic is more favorable than Skyworks Solutions.

Dividends

Skyworks Solutions pays an annual dividend of $1.12 per share and has a dividend yield of 1.1%. Cirrus Logic does not pay a dividend. Skyworks Solutions pays out 23.0% of its earnings in the form of a dividend.

Summary

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

Cirrus Logic Company Profile

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.

Skyworks Solutions Company Profile

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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