Financial Review: Skyworks Solutions (NASDAQ:SWKS) vs. Lattice Semiconductor (NASDAQ:LSCC)

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

Earnings and Valuation

This table compares Skyworks Solutions and Lattice Semiconductor”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Skyworks Solutions	$4.77 billion	3.30	$982.80 million	$4.85	20.33
Lattice Semiconductor	$627.66 million	11.68	$259.06 million	$1.56	34.17

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

Profitability

This table compares Skyworks Solutions and Lattice Semiconductor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Skyworks Solutions	17.85%	15.41%	11.60%
Lattice Semiconductor	30.26%	23.39%	19.34%

Institutional and Insider Ownership

85.4% of Skyworks Solutions shares are held by institutional investors. Comparatively, 98.1% of Lattice Semiconductor shares are held by institutional investors. 0.4% of Skyworks Solutions shares are held by company insiders. Comparatively, 1.8% of Lattice Semiconductor shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Skyworks Solutions and Lattice Semiconductor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Skyworks Solutions	3	14	5	0	2.09
Lattice Semiconductor	1	0	10	1	2.92

Skyworks Solutions currently has a consensus price target of $112.53, indicating a potential upside of 14.12%. Lattice Semiconductor has a consensus price target of $63.08, indicating a potential upside of 18.33%. Given Lattice Semiconductor’s stronger consensus rating and higher probable upside, analysts clearly believe Lattice Semiconductor is more favorable than Skyworks Solutions.

Volatility & Risk

Skyworks Solutions has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, Lattice Semiconductor has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500.

Summary

Lattice Semiconductor beats Skyworks Solutions on 12 of the 15 factors compared between the two stocks.

About Skyworks Solutions

Skyworks Solutions, Inc., together with its subsidiaries, designs, develops, manufactures, and markets proprietary semiconductor products in the United States, China, South Korea, Taiwan, Europe, the Middle East, Africa, and the rest of Asia-Pacific. Its product portfolio includes amplifiers, antenna tuners, attenuators, automotive tuners and digital radios, DC/DC converters, demodulators, detectors, diodes, wireless analog system on chip products, directional couplers, diversity receive modules, filters, front-end modules, hybrids, light emitting diode drivers, low noise amplifiers, mixers, modulators, optocouplers/optoisolators, phase locked loops, phase shifters, power dividers/combiners, power over ethernet, power isolators, receivers, switches, synthesizers, timing devices, voltage controlled oscillators/synthesizers, and voltage regulators. The company products are the used in aerospace, automotive, broadband, cellular infrastructure, connected home, defense, entertainment and gaming, industrial, medical, military, smartphone, tablet, and wearable markets. It sells its products through direct sales force, electronic component distributors, and independent sales representatives. Skyworks Solutions, Inc. was founded in 1962 and is based in Irvine, California.

About Lattice Semiconductor

Lattice Semiconductor Corporation, together with its subsidiaries, develops and sells semiconductor products in Asia, Europe, and the Americas. The company offers field programmable gate arrays that consist of four product families, including the Lattice Certus and ECP, Mach, iCE, and CrossLink. It also provides video connectivity application specific standard products. In addition, the company licenses its technology portfolio through standard IP and IP core licensing, patent monetization, and IP services. It sells its products directly to customers, and indirectly through a network of independent manufacturers' representatives and independent distributors. The company primarily serves original equipment manufacturers in the communications and computing, consumer, and industrial, and automotive markets. Lattice Semiconductor Corporation was incorporated in 1983 and is headquartered in Hillsboro, Oregon.