Home > Comparison > Technology > ADI vs SWKS
The strategic rivalry between Analog Devices, Inc. and Skyworks Solutions, Inc. defines the current trajectory of the semiconductor industry. Analog Devices operates as a capital-intensive innovator in mixed-signal and digital signal processing, while Skyworks specializes in high-margin proprietary semiconductor components. This analysis contrasts Analog Devices’ broad industrial applications with Skyworks’ focused communications portfolio to determine which company offers superior risk-adjusted returns for a diversified technology investment.
Table of contents
Companies Overview
Analog Devices and Skyworks Solutions both hold prominent roles in the semiconductor market, shaping critical technology infrastructure worldwide.
Analog Devices, Inc.: Leader in Mixed-Signal Innovation
Analog Devices dominates the analog, mixed-signal, and digital signal processing semiconductor niche. Its core revenue stems from integrated circuits that convert between analog and digital signals, powering automotive, industrial, and communication markets. In 2026, the company focuses strategically on expanding its high-performance analog and power management solutions to support emerging industrial and automotive applications.
Skyworks Solutions, Inc.: Specialist in Wireless Connectivity
Skyworks Solutions excels in proprietary semiconductor products critical for wireless communication systems. It generates revenue through amplifiers, front-end modules, and RF components serving smartphones, broadband, and automotive sectors. The firm’s 2026 strategy prioritizes innovation in wireless analog system-on-chip products to capture growth in cellular infrastructure and connected devices.
Strategic Collision: Similarities & Divergences
Both companies compete in semiconductors but differ in philosophy: Analog Devices emphasizes high-performance analog integration, while Skyworks pursues specialized wireless connectivity components. Their battlefront lies in automotive and communications markets where precision and innovation drive market share. This divergence creates distinct investment profiles—Analog Devices leans on broad industrial applications, Skyworks on targeted wireless solutions.
Income Statement Comparison
The following data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | Analog Devices, Inc. (ADI) | Skyworks Solutions, Inc. (SWKS) |
|---|---|---|
| Revenue | 11.02B | 4.09B |
| Cost of Revenue | 4.99B | 2.40B |
| Operating Expenses | 3.02B | 1.18B |
| Gross Profit | 6.02B | 1.68B |
| EBITDA | 5.03B | 1.02B |
| EBIT | 3.03B | 554M |
| Interest Expense | 318M | 27M |
| Net Income | 2.27B | 477M |
| EPS | 4.59 | 3.09 |
| Fiscal Year | 2025 | 2025 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison reveals which company runs its business more efficiently and delivers stronger shareholder returns.
Analog Devices, Inc. Analysis
Analog Devices shows robust revenue growth, from $7.3B in 2021 to $11B in 2025. Net income follows suit, surging to $2.27B in 2025. Its gross margin stands at a healthy 54.7%, while net margin holds strong at 20.6%. The latest fiscal year highlights impressive momentum, with a 16.9% revenue growth and a 44.3% jump in EBIT.
Skyworks Solutions, Inc. Analysis
Skyworks exhibits a declining revenue trend, dipping from $5.1B in 2021 to $4.1B in 2025. Net income shrinks significantly to $477M in 2025. The gross margin at 41.2% and net margin at 11.7% are notably lower than Analog Devices. The most recent year shows contraction in revenue (-2.2%) and net income (-18.2%), signaling efficiency challenges.
Margin Strength vs. Revenue Resilience
Analog Devices outperforms Skyworks across all key metrics, boasting superior margins and consistent top-line growth. Skyworks faces headwinds with shrinking sales and declining profitability. For investors, Analog Devices’ profile of margin strength combined with strong growth offers a more compelling and resilient investment foundation.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency of the companies compared below:
| Ratios | Analog Devices, Inc. (ADI) | Skyworks Solutions, Inc. (SWKS) |
|---|---|---|
| ROE | 6.7% | 8.3% |
| ROIC | 5.5% | 6.4% |
| P/E | 51.1 | 25.0 |
| P/B | 3.42 | 2.07 |
| Current Ratio | 2.19 | 2.33 |
| Quick Ratio | 1.68 | 1.76 |
| D/E | 0.26 | 0.21 |
| Debt-to-Assets | 18.1% | 15.2% |
| Interest Coverage | 9.45 | 18.45 |
| Asset Turnover | 0.23 | 0.52 |
| Fixed Asset Turnover | 3.32 | 2.95 |
| Payout Ratio | 85% | 91% |
| Dividend Yield | 1.66% | 3.63% |
| Fiscal Year | 2025 | 2025 |
Efficiency & Valuation Duel: The Vital Signs
Ratios act as a company’s DNA, exposing hidden risks and operational excellence that define its market standing and investment appeal.
Analog Devices, Inc.
Analog Devices shows a strong net margin of 20.58%, but its ROE at 6.7% is weak, suggesting limited shareholder profitability. The stock trades at a stretched P/E of 51.05, indicating expensive valuation. It balances payout with a 1.66% dividend yield, reflecting moderate shareholder returns alongside significant R&D reinvestment.
Skyworks Solutions, Inc.
Skyworks posts a favorable net margin of 11.67% and a better ROE of 8.29%, signaling superior profitability. Its P/E ratio of 24.95 appears fairly valued relative to peers. The company offers a compelling 3.63% dividend yield, emphasizing consistent shareholder returns while maintaining a solid reinvestment in growth.
Valuation Stretch vs. Balanced Profitability
Analog Devices carries a premium valuation but struggles with weaker ROE, while Skyworks delivers a better profitability mix at a more reasonable price. Skyworks offers a more balanced risk-reward profile. Conservative investors may prefer Skyworks’ blend of income and efficiency.
Which one offers the Superior Shareholder Reward?
I see Analog Devices, Inc. (ADI) pays a modest 1.66% dividend yield with a high payout ratio near 85%, signaling limited room for growth in dividends. Its free cash flow comfortably covers distributions and capex, supporting sustainability. ADI’s buyback program is moderate, complementing its total return. Skyworks Solutions, Inc. (SWKS) offers a higher 3.63% dividend yield with a payout ratio around 90%, indicating aggressive shareholder returns but tighter margin for increases. SWKS maintains a strong buyback program, boosting total shareholder rewards. Historically, I’ve observed that SWKS’s higher yield and intense buybacks deliver superior total returns, but with slightly more risk. In 2026, I judge SWKS’s distribution model as more attractive for total shareholder reward, balancing yield and buybacks effectively, while ADI leans towards conservative growth.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of Analog Devices, Inc. and Skyworks Solutions, Inc., highlighting their financial performance dimensions:
Skyworks Solutions shows a stronger discounted cash flow (4 vs. 3) and return on assets (4 vs. 3), signaling better cash generation and asset efficiency. Both firms match on return on equity (3 each). Skyworks also has a healthier debt-to-equity score (3 vs. 2), indicating a sturdier balance sheet. Analog Devices lags on valuation, with a very unfavorable P/E score (1 vs. 2) and a lower P/B score (2 vs. 3). Skyworks presents a more balanced profile, while Analog Devices relies more heavily on specific strengths.
Bankruptcy Risk: Solvency Showdown
Skyworks and Analog Devices both reside safely above the distress threshold, but Analog Devices’ Altman Z-Score (7.29) surpasses Skyworks’ (4.34), signaling superior long-term solvency in this cycle:
Financial Health: Quality of Operations
Both companies score a strong 7 on the Piotroski F-Score, reflecting robust internal financial health and operational quality. Neither shows immediate red flags, placing them well above average in financial strength:
How are the two companies positioned?
This section dissects the operational DNA of ADI and SWKS by comparing their revenue distribution and internal dynamics. The goal is to confront their economic moats to identify which model offers the most resilient competitive advantage today.
Revenue Segmentation: The Strategic Mix
This visual comparison dissects how Analog Devices, Inc. and Skyworks Solutions, Inc. diversify their income streams and where their primary sector bets lie:
Analog Devices leans heavily on Industrial, generating $4.3B in 2024, dwarfing its other sectors. Automotive at $2.8B anchors its portfolio, while Communications and Consumer lag behind. Skyworks Solutions lacks available data for 2024, preventing a direct comparison. Analog Devices’ reliance on Industrial and Automotive signals infrastructure dominance but raises concentration risk. Its moderate diversification contrasts with Skyworks’ unknown exposure, emphasizing the need for cautious portfolio weighting.
Strengths and Weaknesses Comparison
This table compares the Strengths and Weaknesses of Analog Devices, Inc. (ADI) and Skyworks Solutions, Inc. (SWKS):
ADI Strengths
- Strong diversification across Automotive, Industrial, Communications, Consumer sectors
- Favorable net margin at 20.58%
- Solid liquidity with current ratio 2.19 and quick ratio 1.68
- Low debt-to-equity at 0.26 and strong interest coverage at 9.54
- Global presence with significant revenues from US, China, Europe
- Favorable fixed asset turnover at 3.32
SWKS Strengths
- Balanced global revenue with dominant US sales and presence in Asia and EMEA
- Favorable net margin at 11.67% and dividend yield at 3.63%
- Strong liquidity ratios: current 2.33, quick 1.76
- Low debt-to-equity at 0.21 and high interest coverage at 20.44
- Moderate asset turnover at 0.52 supports operational efficiency
- Neutral valuations with PE 24.95 and PB 2.07
ADI Weaknesses
- Unfavorable high PE at 51.05 and PB at 3.42 indicating premium valuation
- Low return on equity at 6.7% below cost of capital
- Unfavorable asset turnover at 0.23 suggests lower asset efficiency
- Net margin advantage but ROIC (5.55%) below WACC (8.42%) signals weak capital returns
- Concentrated industrial segment may limit growth
- Moderate unfavorable ratios at 28.57%
SWKS Weaknesses
- Lower net margin than ADI at 11.67%
- ROE at 8.29% still below WACC at 9.25%, limiting value creation
- Neutral asset turnover 0.52 and fixed asset turnover 2.95 signals average efficiency
- Higher neutral ratio share (42.86%) implies mixed performance metrics
- Less diversified revenue segments visible in data
Both companies show slightly favorable overall financial profiles but face challenges in capital efficiency and valuation. ADI’s broader sector and geographic diversification contrasts with SWKS’s concentrated US and Asian market focus. Each must balance premium valuations against operational returns in their strategic priorities.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat is the only reliable shield protecting long-term profits from relentless competitive erosion in dynamic markets:
Analog Devices, Inc. (ADI): Technological Integration & Margin Resilience
ADI’s moat stems from its intangible assets and advanced analog/mixed-signal technology. This drives high ROIC and stable 27.5% EBIT margins. Expanding into automotive and industrial markets in 2026 could deepen its competitive edge.
Skyworks Solutions, Inc. (SWKS): Niche RF Components Under Pressure
SWKS relies on specialized radio frequency expertise but faces declining ROIC and shrinking margins. Unlike ADI, it suffers a steep 68% net income drop over five years. Recovery hinges on new product innovation and regaining market share.
Moat Quality Face-Off: Innovation Depth vs. Market Vulnerability
ADI exhibits a wider, more durable moat with growing profitability and diversified end markets. SWKS’s shrinking ROIC and unfavorable income trends reveal a fragile moat. ADI is better positioned to defend and expand its market share in 2026.
Which stock offers better returns?
The past year reveals stark contrasts: Analog Devices surged sharply with accelerating gains, while Skyworks endured a prolonged decline, reflecting diverging investor sentiment and trading momentum.
Trend Comparison
Analog Devices, Inc. shows a bullish trend over 12 months with a 59.47% price increase, acceleration in gains, and volatility near 27.5%. It reached a high of 311.29 and a low of 164.6.
Skyworks Solutions, Inc. displays a bearish trend over the same period, with a 46.26% price drop and decelerating losses. Volatility stands at 16.54%, with a high of 116.18 and a low of 52.78.
Analog Devices outperformed Skyworks significantly, delivering the highest market returns and positive momentum while Skyworks experienced sustained downward pressure.
Target Prices
Analysts present a mixed but clear consensus on target prices for Analog Devices, Inc. and Skyworks Solutions, Inc.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| Analog Devices, Inc. | 270 | 375 | 316 |
| Skyworks Solutions, Inc. | 60 | 140 | 78.8 |
Analog Devices trades near its consensus target, signaling moderate upside potential. Skyworks shows a wide target range, reflecting higher uncertainty but possible strong gains versus its current price.
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How do institutions grade them?
Analog Devices, Inc. Grades
The following table summarizes recent grades from well-known financial institutions for Analog Devices, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Susquehanna | Maintain | Positive | 2026-01-22 |
| B of A Securities | Maintain | Buy | 2026-01-21 |
| Stifel | Maintain | Buy | 2026-01-16 |
| Oppenheimer | Maintain | Outperform | 2026-01-16 |
| Citigroup | Maintain | Buy | 2026-01-15 |
| Wells Fargo | Upgrade | Overweight | 2026-01-15 |
| Keybanc | Maintain | Overweight | 2026-01-13 |
| Truist Securities | Maintain | Hold | 2025-12-19 |
| UBS | Maintain | Buy | 2025-12-08 |
| Evercore ISI Group | Maintain | Outperform | 2025-11-26 |
Skyworks Solutions, Inc. Grades
The following table presents recent grades from recognized rating firms for Skyworks Solutions, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Morgan Stanley | Maintain | Equal Weight | 2026-02-02 |
| Mizuho | Maintain | Neutral | 2026-01-26 |
| B. Riley Securities | Maintain | Neutral | 2026-01-26 |
| Susquehanna | Maintain | Neutral | 2026-01-22 |
| UBS | Maintain | Neutral | 2026-01-20 |
| Mizuho | Upgrade | Neutral | 2025-11-11 |
| UBS | Maintain | Neutral | 2025-11-05 |
| JP Morgan | Maintain | Neutral | 2025-11-05 |
| Citigroup | Upgrade | Neutral | 2025-10-29 |
| UBS | Maintain | Neutral | 2025-10-29 |
Which company has the best grades?
Analog Devices, Inc. consistently receives Buy, Outperform, and Overweight grades, reflecting stronger institutional confidence. Skyworks Solutions, Inc. mainly holds Neutral or Equal Weight ratings, suggesting more cautious investor sentiment. These grade differences can influence portfolio positioning and risk appetite.
Risks specific to each company
The following categories identify the critical pressure points and systemic threats facing both firms in the 2026 market environment:
1. Market & Competition
Analog Devices, Inc. (ADI)
- Large market cap supports resilience but faces intense semiconductor competition globally.
Skyworks Solutions, Inc. (SWKS)
- Smaller market cap with higher beta indicates greater sensitivity to competitive shifts in semiconductors.
2. Capital Structure & Debt
Analog Devices, Inc. (ADI)
- Low debt-to-equity (0.26) and strong interest coverage (9.54) reduce financial risk.
Skyworks Solutions, Inc. (SWKS)
- Slightly lower debt-to-equity (0.21) and superior interest coverage (20.44) show robust balance sheet.
3. Stock Volatility
Analog Devices, Inc. (ADI)
- Beta of 1.03 suggests moderate market volatility exposure, close to market average.
Skyworks Solutions, Inc. (SWKS)
- Beta of 1.32 signals above-average volatility, increasing risk for risk-averse investors.
4. Regulatory & Legal
Analog Devices, Inc. (ADI)
- Global operations expose ADI to multi-jurisdictional regulatory challenges, especially in China and Europe.
Skyworks Solutions, Inc. (SWKS)
- SWKS faces similar regulatory risks compounded by reliance on international manufacturing and IP protections.
5. Supply Chain & Operations
Analog Devices, Inc. (ADI)
- More diversified end markets and products mitigate supply chain disruptions.
Skyworks Solutions, Inc. (SWKS)
- Higher exposure to smartphone and consumer electronics may increase supply chain vulnerability.
6. ESG & Climate Transition
Analog Devices, Inc. (ADI)
- Larger scale enables more substantial investments in ESG initiatives but also greater scrutiny.
Skyworks Solutions, Inc. (SWKS)
- Smaller scale with increasing ESG commitments but less capacity to absorb transition costs.
7. Geopolitical Exposure
Analog Devices, Inc. (ADI)
- Significant operations in Asia and US expose ADI to US-China trade tensions and export restrictions.
Skyworks Solutions, Inc. (SWKS)
- Similar geopolitical risks, with possibly higher sensitivity due to smaller market cap and operational scale.
Which company shows a better risk-adjusted profile?
Analog Devices’ most impactful risk lies in geopolitical exposure, given its extensive global footprint. Skyworks’ greatest risk is higher stock volatility reflecting sensitivity to market and competitive pressures. ADI’s larger scale and stronger capital structure offer a more balanced risk profile. Skyworks’ elevated beta and dependency on volatile end markets heighten its risk. Recent ratio evaluations confirm ADI’s superior liquidity and debt metrics, justifying my preference for ADI on a risk-adjusted basis.
Final Verdict: Which stock to choose?
Analog Devices, Inc. (ADI) stands out as a cash machine with a robust income statement and accelerating revenue growth. Its superpower lies in operational efficiency and strong cash conversion. The key point of vigilance is its slightly unfavorable moat, indicating value destruction despite improving profitability. ADI suits an aggressive growth portfolio.
Skyworks Solutions, Inc. (SWKS) offers a strategic moat through recurring revenue safety and a solid balance sheet. It provides better financial stability than ADI, with a safer debt profile and attractive dividend yield. However, declining profitability and negative growth trends temper enthusiasm. SWKS fits well in a GARP (Growth at a Reasonable Price) portfolio.
If you prioritize growth fueled by operational strength and accelerating earnings, ADI is the compelling choice due to its superior income momentum. However, if you seek better financial stability and income with moderate growth, SWKS offers better risk management and dividend appeal. Both present analytical scenarios with distinct risk-reward profiles.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Analog Devices, Inc. and Skyworks Solutions, Inc. to enhance your investment decisions:
