Comparing Semiconductor Manufacturing International (OTCMKTS:SMICY) & Skyworks Solutions (NASDAQ:SWKS)

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

Insider & Institutional Ownership

85.4% of Skyworks Solutions shares are owned by institutional investors. Comparatively, 0.0% of Semiconductor Manufacturing International shares are owned by institutional investors. 0.3% of Skyworks Solutions shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

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

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

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.

Analyst Ratings

This is a summary of current recommendations and price targets for Skyworks Solutions and Semiconductor Manufacturing International, as reported by MarketBeat.com.

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

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

Profitability

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

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

Volatility & Risk

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

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.