Navitas Semiconductor (NASDAQ:NVTS) versus Skyworks Solutions (NASDAQ:SWKS) Critical Comparison

Navitas Semiconductor (NASDAQ:NVTS) and Skyworks Solutions (NASDAQ:SWKS) are both technology companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, analyst recommendations and valuation.

Volatility & Risk

Navitas Semiconductor has a beta of 3.86, suggesting that its stock price is 286% more volatile than the S&P 500. Comparatively, Skyworks Solutions has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500.

Institutional and Insider Ownership

46.1% of Navitas Semiconductor shares are owned by institutional investors. Comparatively, 85.4% of Skyworks Solutions shares are owned by institutional investors. 12.4% of Navitas Semiconductor shares are owned by insiders. Comparatively, 0.2% of Skyworks Solutions shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Navitas Semiconductor	$45.92 million	73.74	-$116.95 million	($1.33)	-9.75
Skyworks Solutions	$4.09 billion	2.47	$477.10 million	$1.93	34.79

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Navitas Semiconductor	-856.85%	-13.13%	-11.91%
Skyworks Solutions	7.23%	10.74%	7.95%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Navitas Semiconductor and Skyworks Solutions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Navitas Semiconductor	2	2	2	0	2.00
Skyworks Solutions	2	18	4	0	2.08

Navitas Semiconductor currently has a consensus target price of $15.92, suggesting a potential upside of 22.74%. Skyworks Solutions has a consensus target price of $74.00, suggesting a potential upside of 10.22%. Given Navitas Semiconductor’s higher possible upside, equities research analysts clearly believe Navitas Semiconductor is more favorable than Skyworks Solutions.

Summary

Skyworks Solutions beats Navitas Semiconductor on 10 of the 14 factors compared between the two stocks.

About Navitas Semiconductor

Navitas Semiconductor Corporation designs, develops, and markets gallium nitride power integrated circuits, silicon carbide, associated high-speed silicon system controllers, and digital isolators used in power conversion and charging. The company’s products are used in mobile, consumer, data center, solar, electric vehicle, industrial motor drive, smart grid, and transportation applications. It operates in the United States, Europe, China, rest of Asia, and internationally. The company was founded in 2013 and is based in Torrance, California.

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.