Broadcom vs Skyworks Solutions Which Is More Lucrative?

Broadcom and Skyworks Solutions are two leading semiconductor companies that are heavily invested in the telecommunications industry. Both companies have seen significant growth in recent years, as the demand for advanced connectivity solutions continues to rise. However, there are key differences between the two companies in terms of their product offerings, market focus, and financial performance. This analysis will delve into the strengths and weaknesses of Broadcom and Skyworks Solutions stocks, providing insights for potential investors looking to capitalize on the growth opportunities in the semiconductor industry.

Broadcom or Skyworks Solutions?

When comparing Broadcom and Skyworks Solutions, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Broadcom and Skyworks Solutions.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Broadcom has a dividend yield of 1.47%, while Skyworks Solutions has a dividend yield of 3.11%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Broadcom reports a 5-year dividend growth of -13.53% year and a payout ratio of 181.24%. On the other hand, Skyworks Solutions reports a 5-year dividend growth of 13.18% year and a payout ratio of 55.82%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Broadcom P/E ratio at 163.74 and Skyworks Solutions's P/E ratio at 18.09. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Broadcom P/B ratio is 12.71 while Skyworks Solutions's P/B ratio is 2.23.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Broadcom has seen a 5-year revenue growth of 0.73%, while Skyworks Solutions's is 0.40%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Broadcom's ROE at 8.87% and Skyworks Solutions's ROE at 12.48%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $176.82 for Broadcom and $86.85 for Skyworks Solutions. Over the past year, Broadcom's prices ranged from $90.31 to $186.42, with a yearly change of 106.42%. Skyworks Solutions's prices fluctuated between $86.65 and $120.86, with a yearly change of 39.48%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.