Skyworks Solutions (NASDAQ:SWKS) and Enphase Energy (NASDAQ:ENPH) Head to Head Analysis

Skyworks Solutions (NASDAQ:SWKS) and Enphase Energy (NASDAQ:ENPH) are both large-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Skyworks Solutions 24.13% 20.73% 17.34%
Enphase Energy 24.69% 30.06% 10.78%

Earnings & Valuation

This table compares Skyworks Solutions and Enphase Energy’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Skyworks Solutions $3.38 billion 7.79 $853.60 million $5.71 27.72
Enphase Energy $624.33 million 43.53 $161.15 million $0.67 321.06

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

Institutional & Insider Ownership

76.9% of Skyworks Solutions shares are held by institutional investors. Comparatively, 72.7% of Enphase Energy shares are held by institutional investors. 0.4% of Skyworks Solutions shares are held by insiders. Comparatively, 7.1% of Enphase Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Skyworks Solutions has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, Enphase Energy has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for Skyworks Solutions and Enphase Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Skyworks Solutions 0 9 19 0 2.68
Enphase Energy 1 6 12 0 2.58

Skyworks Solutions currently has a consensus target price of $153.04, indicating a potential downside of 3.32%. Enphase Energy has a consensus target price of $135.82, indicating a potential downside of 36.86%. Given Skyworks Solutions’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Skyworks Solutions is more favorable than Enphase Energy.

Summary

Skyworks Solutions beats Enphase Energy on 9 of the 14 factors compared between the two stocks.

About Skyworks Solutions

Skyworks Solutions, Inc., together with its subsidiaries, designs, develops, manufactures, and markets proprietary semiconductor products, including intellectual property in the United States, China, South Korea, Taiwan, Europe, the Middle East, Africa, and rest of Asia-Pacific. Its product portfolio includes amplifiers, antenna tuners, attenuators, circulators/isolators, 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, receivers, switches, synthesizers, technical ceramics, voltage controlled oscillators/synthesizers, and voltage regulators. The company provides its products for use in the aerospace, automotive, broadband, cellular infrastructure, connected home, 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. The company was founded in 1962 and is headquartered in Irvine, California.

About Enphase Energy

Enphase Energy, Inc., together with its subsidiaries, designs, develops, manufactures, and sells home energy solutions for the solar photovoltaic industry in the United States and internationally. The company offers semiconductor-based microinverter, which converts energy at the individual solar module level, and combines with its proprietary networking and software technologies to provide energy monitoring and control services. It also offers AC battery storage systems; Envoy communications gateway; and Enlighten cloud-based monitoring service, as well as other accessories. The company sells its solutions to solar distributors; and directly to large installers, original equipment manufacturers, strategic partners, and homeowners, as well as directly to the homeowners and the do-it-yourself market through its legacy product upgrade program or online store. In addition, it offers online and in-person training resources for solar and storage installers, and Enphase system owners through its Enphase University. Enphase Energy, Inc. was founded in 2006 and is headquartered in Fremont, California.

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