Financial Review: Skyworks Solutions (NASDAQ:SWKS) & Maxeon Solar Technologies (NASDAQ:MAXN)

Maxeon Solar Technologies (NASDAQ:MAXN) and Skyworks Solutions (NASDAQ:SWKS) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Insider & Institutional Ownership

47.7% of Maxeon Solar Technologies shares are owned by institutional investors. Comparatively, 85.4% of Skyworks Solutions shares are owned by institutional investors. 0.9% of Maxeon Solar Technologies 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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Maxeon Solar Technologies and Skyworks Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Maxeon Solar Technologies	1	0	0	0	1.00
Skyworks Solutions	2	18	4	0	2.08

Skyworks Solutions has a consensus price target of $74.00, suggesting a potential downside of 1.89%. Given Skyworks Solutions’ stronger consensus rating and higher probable upside, analysts clearly believe Skyworks Solutions is more favorable than Maxeon Solar Technologies.

Valuation and Earnings

This table compares Maxeon Solar Technologies and Skyworks Solutions”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Maxeon Solar Technologies	$176.41 million	0.07	-$614.30 million	($163.07)	-0.00
Skyworks Solutions	$4.09 billion	2.78	$477.10 million	$1.93	39.08

Skyworks Solutions has higher revenue and earnings than Maxeon Solar Technologies. Maxeon Solar Technologies 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 Maxeon Solar Technologies and Skyworks Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Maxeon Solar Technologies	N/A	N/A	N/A
Skyworks Solutions	7.23%	10.74%	7.95%

Risk & Volatility

Maxeon Solar Technologies has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, Skyworks Solutions has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500.

Summary

Skyworks Solutions beats Maxeon Solar Technologies on 13 of the 14 factors compared between the two stocks.

About Maxeon Solar Technologies

Maxeon Solar Technologies, Ltd. designs, manufactures, markets, and sells solar panels and related solar system components worldwide. The company provides interdigitated back contact and shingled solar cells and panels under the SunPower brand. It offers its products to dealers, project developers, system integrators, distributors, resellers, and residential and small-scale commercial customers. The company was incorporated in 2019 and is headquartered in Singapore.

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.