Analyzing Skyworks Solutions (SWKS) & O2Micro International Limited (OIIM)

O2Micro International Limited (NASDAQ: OIIM) and Skyworks Solutions (NASDAQ:SWKS) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Earnings & Valuation

This table compares O2Micro International Limited and Skyworks Solutions’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
O2Micro International Limited $59.82 million 0.69 -$3.45 million ($0.07) -22.71
Skyworks Solutions $3.50 billion 5.67 $1.45 billion $5.21 20.72

Skyworks Solutions has higher revenue and earnings than O2Micro International Limited. O2Micro International Limited is trading at a lower price-to-earnings ratio than Skyworks Solutions, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and price targets for O2Micro International Limited and Skyworks Solutions, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
O2Micro International Limited 0 0 0 0 N/A
Skyworks Solutions 1 4 21 1 2.81

Skyworks Solutions has a consensus target price of $111.58, suggesting a potential upside of 3.38%. Given Skyworks Solutions’ higher probable upside, analysts plainly believe Skyworks Solutions is more favorable than O2Micro International Limited.

Profitability

This table compares O2Micro International Limited and Skyworks Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
O2Micro International Limited -2.59% 0.01% 0.01%
Skyworks Solutions 27.86% 28.67% 26.04%

Institutional & Insider Ownership

39.1% of O2Micro International Limited shares are held by institutional investors. Comparatively, 80.8% of Skyworks Solutions shares are held by institutional investors. 8.0% of O2Micro International Limited shares are held by insiders. Comparatively, 0.5% of Skyworks Solutions shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Skyworks Solutions pays an annual dividend of $1.28 per share and has a dividend yield of 1.2%. O2Micro International Limited does not pay a dividend. Skyworks Solutions pays out 24.6% of its earnings in the form of a dividend.

Volatility & Risk

O2Micro International Limited has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500. Comparatively, Skyworks Solutions has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Summary

Skyworks Solutions beats O2Micro International Limited on 13 of the 15 factors compared between the two stocks.

About O2Micro International Limited

O2Micro International Limited designs, develops and markets power management components for the Computer, Consumer, Industrial, Automotive and Communications markets. The Company’s power management products include integrated circuits (ICs) for liquid crystal display (LCD) and light emitting diode (LED) lighting; control and monitoring of battery charging and discharging; direct current (DC)/DC and alternating current (AC)/DC conversion, and provide select and switch functionality between power sources. It offers a range of products, including desktop and notebook monitors, portable media players, digital cameras, battery management systems for power tools, electric bikes, low emission vehicles (LEV) applications, industrial personal computers (PCs), portable media devices, smart phones, personal digital assistants (PDAs), global positioning system (GPS) units for navigational assistance in vehicles and electric and hybrid vehicle (EV/HEV) battery management.

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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