Skyworks Solutions vs Broadcom Which Performs Better?

Skyworks Solutions and Broadcom are both leading semiconductor companies in the tech industry. Skyworks Solutions specializes in designing and manufacturing high-performance analog and mixed-signal semiconductors for a variety of applications, including wireless communications and automotive. On the other hand, Broadcom is known for its diverse portfolio of semiconductor solutions for data center, networking, and broadband access. Both companies have seen strong growth in recent years, but their stock performance and financial health may vary, making them attractive options for investors seeking exposure to the semiconductor sector.

Skyworks Solutions or Broadcom?

When comparing Skyworks Solutions and Broadcom, 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 Skyworks Solutions and Broadcom.

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. Skyworks Solutions has a dividend yield of 3.11%, while Broadcom has a dividend yield of 1.47%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Skyworks Solutions reports a 5-year dividend growth of 13.18% year and a payout ratio of 55.82%. On the other hand, Broadcom reports a 5-year dividend growth of -13.53% year and a payout ratio of 181.24%.

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 Skyworks Solutions P/E ratio at 18.09 and Broadcom's P/E ratio at 163.74. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Skyworks Solutions P/B ratio is 2.23 while Broadcom's P/B ratio is 12.71.

Growth Investors:

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

Retail Investors:

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