Park Electrochemical Corporation (PKE) & Skyworks Solutions (SWKS) Critical Review

Park Electrochemical Corporation (NYSE: PKE) and Skyworks Solutions (NASDAQ:SWKS) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.

Dividends

Park Electrochemical Corporation pays an annual dividend of $0.40 per share and has a dividend yield of 2.1%. Skyworks Solutions pays an annual dividend of $1.28 per share and has a dividend yield of 1.2%. Park Electrochemical Corporation pays out 129.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Skyworks Solutions pays out 24.6% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Park Electrochemical Corporation and Skyworks Solutions’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Park Electrochemical Corporation $111.31 million 3.40 $12.43 million $0.31 60.29
Skyworks Solutions $3.50 billion 5.42 $1.45 billion $5.21 19.83

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Park Electrochemical Corporation and Skyworks Solutions, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Park Electrochemical Corporation 0 0 1 0 3.00
Skyworks Solutions 1 4 21 1 2.81

Park Electrochemical Corporation currently has a consensus price target of $22.00, indicating a potential upside of 17.71%. Skyworks Solutions has a consensus price target of $112.21, indicating a potential upside of 8.60%. Given Park Electrochemical Corporation’s stronger consensus rating and higher possible upside, research analysts clearly believe Park Electrochemical Corporation is more favorable than Skyworks Solutions.

Profitability

This table compares Park Electrochemical Corporation and Skyworks Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Park Electrochemical Corporation 5.63% 5.12% 3.02%
Skyworks Solutions 27.86% 28.67% 26.04%

Institutional & Insider Ownership

81.7% of Park Electrochemical Corporation shares are owned by institutional investors. Comparatively, 80.8% of Skyworks Solutions shares are owned by institutional investors. 8.0% of Park Electrochemical Corporation shares are owned by company insiders. Comparatively, 0.5% 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 will outperform the market over the long term.

Volatility & Risk

Park Electrochemical Corporation has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Skyworks Solutions has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.

Summary

Skyworks Solutions beats Park Electrochemical Corporation on 11 of the 17 factors compared between the two stocks.

Park Electrochemical Corporation Company Profile

Park Electrochemical Corp. is a global advanced materials company. The Company develops, manufactures, markets and sells digital and radio frequency (RF)/microwave printed circuit materials products principally for the telecommunications and Internet infrastructure and high-end computing markets and advanced composite materials, parts and assemblies and low-volume tooling products for the aerospace markets. The Company operates through integrated business units in Asia, Europe and North America. The Company’s manufacturing facilities are located in Singapore, France, Kansas, Arizona and California. The Company also maintains research and development facilities in Arizona, Kansas and Singapore. The Company’s foreign operations are conducted principally by the Company’s subsidiaries in Singapore and France.

Skyworks Solutions Company Profile

Skyworks Solutions Inc. designs, develops, manufactures and markets semiconductor products, including intellectual property. The Company’s analog semiconductors are connecting people, places, and things, spanning a number of new and unimagined applications within the automotive, broadband, cellular infrastructure, connected home, industrial, medical, military, smartphone, tablet and wearable markets. Its geographical segments include the United States, Other Americas, China, Taiwan, South Korea, Other Asia-Pacific, Europe, Middle East and Africa. It operates throughout the world with engineering, manufacturing, sales and service facilities throughout Asia, Europe and North America. It is engaged with key original equipment manufacturers (OEM), smartphone providers and baseband reference design partners. Its product portfolio consists of various solutions, including amplifiers, attenuators, detectors, diodes, filters, front-end modules, hybrid, mixers, switches, and modulators.

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