Skyworks Solutions (NASDAQ:SWKS) & Towerstream (OTCMKTS:TWER) Critical Analysis

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Skyworks Solutions	$4.18 billion	2.75	$596.00 million	$2.55	29.99
Towerstream	N/A	N/A	N/A	N/A	N/A

Skyworks Solutions has higher revenue and earnings than Towerstream.

Institutional & Insider Ownership

85.4% of Skyworks Solutions shares are owned by institutional investors. 0.3% of Skyworks Solutions shares are owned by company insiders. Comparatively, 6.4% of Towerstream shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Skyworks Solutions	10.43%	11.53%	8.81%
Towerstream	N/A	N/A	N/A

Risk and Volatility

Skyworks Solutions has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Towerstream has a beta of -568.14, indicating that its share price is 56,914% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Skyworks Solutions and Towerstream, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Skyworks Solutions	3	16	1	0	1.90
Towerstream	0	0	0	0	0.00

Skyworks Solutions currently has a consensus target price of $79.06, suggesting a potential upside of 3.36%. Given Skyworks Solutions’ stronger consensus rating and higher possible upside, research analysts plainly believe Skyworks Solutions is more favorable than Towerstream.

Summary

Skyworks Solutions beats Towerstream on 9 of the 10 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 Towerstream

Towerstream Corporation, together with its subsidiaries, provides fixed wireless broadband services over a wireless network transmitting over regulated and unregulated radio spectrum to commercial customers in the United States. Its wireless broadband service supports bandwidth on demand, wireless redundancy, virtual private networks, disaster recovery, bundled data, and video services. The company also offers business class Internet services, such as single tenant service that delivers fixed wireless broadband to a single client through a radio receiver/transmitter on the client’s building dedicated solely to that client; and on-net services to connect building at once and at a cost similar for one high bandwidth customer requiring point-to-point equipment. In addition, it provides temporary Internet solutions to provide solutions for a client’s short-term connection requirements in locations where fiber, copper, and cable infrastructure does not exist or is cost prohibitive. Further, the company offers wholesale Internet services to deliver dedicated Internet access and point-to-point transport solutions with bandwidth options from 5Mbps to 10mbps through fixed wireless network. It serves business customers in New York City, Boston, Chicago, Los Angeles, San Francisco, Seattle, Miami, Dallas-Fort Worth, Houston, Philadelphia, Las Vegas-Reno, and Providence-Newport. The company offers its services through direct sales force. Towerstream Corporation was founded in 1999 and is headquartered in Middletown, Rhode Island.