Semiconductor Manufacturing International (OTCMKTS:SMICY) and Skyworks Solutions (NASDAQ:SWKS) Head to Head Review

Semiconductor Manufacturing International (OTCMKTS:SMICY) and Skyworks Solutions (NASDAQ:SWKS) are both large-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Semiconductor Manufacturing International	0	0	0	0	N/A
Skyworks Solutions	2	16	5	0	2.13

Skyworks Solutions has a consensus price target of $113.94, indicating a potential upside of 17.17%. Given Skyworks Solutions’ higher possible upside, analysts plainly believe Skyworks Solutions is more favorable than Semiconductor Manufacturing International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Semiconductor Manufacturing International	14.53%	4.00%	2.62%
Skyworks Solutions	17.85%	15.41%	11.60%

Institutional & Insider Ownership

0.0% of Semiconductor Manufacturing International shares are owned by institutional investors. Comparatively, 85.4% of Skyworks Solutions shares are owned by institutional investors. 0.3% of Skyworks Solutions shares are owned 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.

Valuation and Earnings

This table compares Semiconductor Manufacturing International and Skyworks Solutions”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Semiconductor Manufacturing International	$3.12 billion	5.18	$234.68 million	$0.21	66.67
Skyworks Solutions	$4.37 billion	3.57	$982.80 million	$5.32	18.28

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

Risk and Volatility

Semiconductor Manufacturing International has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, Skyworks Solutions has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.

Summary

Skyworks Solutions beats Semiconductor Manufacturing International on 11 of the 13 factors compared between the two stocks.

About Semiconductor Manufacturing International

Semiconductor Manufacturing International Corporation, an investment holding company, engages in the computer-aided design, manufacture, testing, packaging, and trading of integrated circuits (IC) and other semiconductor services. It is also involved in wafer manufacturing, wafer probing and bumping, technology development, design service, mask manufacturing, and assembly and final testing of integrated circuits; and sale of self-manufactured products. In addition, the company designs and manufactures semiconductor masks; and offers marketing related services. It operates in North America, China, Hong Kong, and Eurasia. The company serves integrated device manufacturers, fabless semiconductor companies, and system companies. Semiconductor Manufacturing International Corporation was founded in 2000 and is headquartered in Shanghai, the People's Republic of China.

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.