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

Analyst Ratings

This is a summary of recent recommendations and price targets for United Microelectronics and Skyworks Solutions, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Microelectronics 1 4 6 0 2.45
Skyworks Solutions 0 7 20 0 2.74

Skyworks Solutions has a consensus price target of $117.49, indicating a potential upside of 37.68%. Given Skyworks Solutions’ stronger consensus rating and higher possible upside, analysts clearly believe Skyworks Solutions is more favorable than United Microelectronics.

Dividends

United Microelectronics pays an annual dividend of $0.06 per share and has a dividend yield of 2.6%. Skyworks Solutions pays an annual dividend of $1.76 per share and has a dividend yield of 2.1%. Skyworks Solutions pays out 30.8% of its earnings in the form of a dividend. United Microelectronics has increased its dividend for 1 consecutive years and Skyworks Solutions has increased its dividend for 5 consecutive years.

Earnings & Valuation

This table compares United Microelectronics and Skyworks Solutions’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
United Microelectronics $4.93 billion 1.09 $314.53 million N/A N/A
Skyworks Solutions $3.38 billion 4.30 $853.60 million $5.71 14.95

Skyworks Solutions has lower revenue, but higher earnings than United Microelectronics.

Risk & Volatility

United Microelectronics has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Skyworks Solutions has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.

Insider & Institutional Ownership

5.3% of United Microelectronics shares are owned by institutional investors. Comparatively, 81.6% of Skyworks Solutions shares are owned by institutional investors. 8.0% of United Microelectronics shares are owned by company insiders. Comparatively, 0.6% of Skyworks Solutions shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares United Microelectronics and Skyworks Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
United Microelectronics 6.57% 4.76% 2.64%
Skyworks Solutions 25.02% 23.03% 19.53%

Summary

Skyworks Solutions beats United Microelectronics on 12 of the 16 factors compared between the two stocks.

About United Microelectronics

United Microelectronics Corporation provides semiconductor wafer foundry solutions. The company operates through Wafer Fabrication and New Business segments. It provides circuit design, mask tooling, wafer fabrication, and assembly and testing services. The company also engages in the research, development, and manufacture of products in the solar energy and light-emitting diode industries. It serves fabless design companies, and integrated device manufacturers. The company operates primarily in Taiwan, Singapore, China, Japan, Europe, and the United States. United Microelectronics Corporation was founded in 1980 and is headquartered in Hsinchu City, Taiwan.

About Skyworks Solutions

Skyworks Solutions, Inc., together with its subsidiaries, designs, develops, manufactures, and markets proprietary semiconductor products, including intellectual property worldwide. Its product portfolio includes amplifiers, antenna tuners, attenuators, circulators/isolators, DC/DC converters, demodulators, detectors, diodes, directional couplers, diversity receive modules, filters, front-end modules, hybrids, LED drivers, low noise amplifiers, mixers, modulators, optocouplers/optoisolators, phase locked loops, phase shifters, power dividers/combiners, receivers, switches, synthesizers, technical ceramics, voltage controlled oscillators/synthesizers, and voltage regulators. The company provides its products for use in the aerospace, automotive, broadband, cellular infrastructure, connected home, 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. has a collaboration agreement with MediaTek Incorporated to deliver standards-based 5G solution. The company was founded in 1962 and is headquartered in Woburn, Massachusetts.

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