In the fast-paced semiconductor industry, Skyworks Solutions, Inc. (SWKS) and Cirrus Logic, Inc. (CRUS) stand out as key players driving innovation in mixed-signal and analog technologies. Both companies serve overlapping markets such as smartphones and consumer electronics but adopt distinct strategies in product development and market focus. This comparison will help investors navigate their strengths and identify which company offers the most compelling investment opportunity today.
Table of contents
Companies Overview
I will begin the comparison between Skyworks Solutions and Cirrus Logic by providing an overview of these two companies and their main differences.
Skyworks Solutions Overview
Skyworks Solutions, Inc. focuses on designing, developing, manufacturing, and marketing proprietary semiconductor products globally. Its diverse portfolio serves aerospace, automotive, broadband, cellular infrastructure, connected home, entertainment, industrial, medical, military, smartphone, tablet, and wearable markets. Founded in 1962 and headquartered in Irvine, California, Skyworks emphasizes innovation in analog and mixed-signal semiconductors with a broad product range.
Cirrus Logic Overview
Cirrus Logic, Inc. is a fabless semiconductor company specializing in low-power, high-precision mixed-signal processing solutions used in audio and industrial applications. Its products include codecs, amplifiers, digital signal processors, and SoundClear technology, supporting smartphones, tablets, wireless headsets, automotive systems, and professional audio. Founded in 1984 and based in Austin, Texas, Cirrus Logic focuses on enhancing user audio experience and energy-related industrial solutions.
Key similarities and differences
Both companies operate in the semiconductor industry and serve technology-driven markets with mixed-signal semiconductor products. However, Skyworks offers a wider product range across multiple sectors, including aerospace and military, while Cirrus Logic specializes in audio and industrial applications with a fabless model. Skyworks has a larger workforce and broader geographic presence, whereas Cirrus Logic targets niche audio technologies and energy applications.
Income Statement Comparison
The following table compares the key income statement metrics for Skyworks Solutions, Inc. and Cirrus Logic, Inc. for the fiscal year 2025.
| Metric | Skyworks Solutions, Inc. (SWKS) | Cirrus Logic, Inc. (CRUS) |
|---|---|---|
| Market Cap | 8.76B | 6.29B |
| Revenue | 4.09B | 1.90B |
| EBITDA | 1.02B | 497M |
| EBIT | 554M | 445M |
| Net Income | 477M | 332M |
| EPS | 3.09 | 6.24 |
| Fiscal Year | 2025 | 2025 |
Income Statement Interpretations
Skyworks Solutions, Inc.
From 2021 to 2025, Skyworks Solutions experienced a decline in both revenue and net income, with revenue dropping from $5.1B to $4.1B and net income from $1.5B to $477M. Margins also contracted significantly; net margin fell from 29.4% to 11.7%. The most recent year showed a modest revenue decrease of 2.18%, coupled with a sharper net income decline of 18.17%, reflecting margin pressures.
Cirrus Logic, Inc.
Cirrus Logic demonstrated consistent growth in revenue and net income over the 2021-2025 period, with revenue rising from $1.37B to $1.9B and net income increasing from $217M to $332M. Margins improved steadily, with net margin reaching 17.5% in 2025. The latest fiscal year saw a 6% revenue increase and a 14% net margin rise, indicating operational efficiency gains and expanding profitability.
Which one has the stronger fundamentals?
Cirrus Logic presents stronger fundamentals, supported by sustained revenue and net income growth, improving margins, and a favorable income statement evaluation rating of 92.86%. In contrast, Skyworks Solutions faces declining revenues, earnings, and margins, with an unfavorable overall income statement assessment of 71.43% negative. Cirrus’s consistent profitability and growth metrics underscore its comparatively robust financial health.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Skyworks Solutions, Inc. (SWKS) and Cirrus Logic, Inc. (CRUS) based on their most recent fiscal year data.
| Ratios | Skyworks Solutions, Inc. (SWKS) | Cirrus Logic, Inc. (CRUS) |
|---|---|---|
| ROE | 8.29% | 17.01% |
| ROIC | 6.35% | 14.20% |
| P/E | 24.95 | 15.95 |
| P/B | 2.07 | 2.71 |
| Current Ratio | 2.33 | 6.35 |
| Quick Ratio | 1.76 | 4.82 |
| D/E | 0.21 | 0.07 |
| Debt-to-Assets | 15.20% | 6.18% |
| Interest Coverage | 18.45 | 457.0 |
| Asset Turnover | 0.52 | 0.81 |
| Fixed Asset Turnover | 2.95 | 6.62 |
| Payout Ratio | 90.67% | 0% |
| Dividend Yield | 3.63% | 0% |
Interpretation of the Ratios
Skyworks Solutions, Inc.
Skyworks shows a mix of favorable and neutral ratios, with a strong net margin at 11.67% and solid liquidity indicated by a current ratio of 2.33. However, the return on equity at 8.29% is less impressive, signaling moderate profitability. The company pays dividends with a favorable 3.63% yield, suggesting steady shareholder returns without evident risks from payouts or buybacks.
Cirrus Logic, Inc.
Cirrus Logic exhibits predominantly favorable ratios, including a robust net margin of 17.48% and a high return on equity of 17.01%, reflecting effective profitability. Liquidity ratios are mixed, with a very high current ratio of 6.35 considered unfavorable. The company does not pay dividends, likely reinvesting earnings to support growth and innovation, which aligns with its strong operational metrics.
Which one has the best ratios?
Cirrus Logic presents a more favorable overall financial profile, with higher profitability and solid capital structure metrics, despite a less optimal current ratio. Skyworks also demonstrates strengths but has a weaker return on equity and a slightly more cautious outlook. Cirrus’s higher proportion of favorable ratios suggests a comparatively stronger ratio set in 2025.
Strategic Positioning
This section compares the strategic positioning of Skyworks Solutions and Cirrus Logic, focusing on market position, key segments, and exposure to technological disruption:
Skyworks Solutions
- Large market cap with broad semiconductor portfolio facing competitive pressure.
- Diverse products across multiple markets including automotive and smartphones.
- Exposure to disruption in wireless and semiconductor technology sectors.
Cirrus Logic
- Smaller market cap, fabless semiconductor niche with moderate competition.
- Focused on portable audio and high-performance mixed-signal products.
- Faces disruption from evolving audio and mixed-signal processing technologies.
Skyworks Solutions vs Cirrus Logic Positioning
Skyworks operates a diversified semiconductor business across many sectors, providing resilience but facing broad competition. Cirrus Logic’s concentrated focus on audio and mixed-signal ICs offers specialization but limits market breadth.
Which has the best competitive advantage?
Cirrus Logic shows a very favorable moat with growing ROIC and value creation, indicating a durable competitive advantage. Skyworks has a very unfavorable moat with declining ROIC, suggesting value destruction and weaker competitive positioning.
Stock Comparison
The past year revealed starkly divergent trajectories for Skyworks Solutions, Inc. and Cirrus Logic, Inc., with Skyworks experiencing a significant decline while Cirrus Logic posted notable gains, highlighting contrasting market dynamics in their trading patterns.
Trend Analysis
Skyworks Solutions, Inc. exhibited a bearish trend over the past 12 months, with a 43.71% price decline and decelerating losses. The stock ranged from a high of 116.18 to a low of 52.78, with elevated volatility (std deviation of 16.35).
Cirrus Logic, Inc. showed a bullish trend over the same period, gaining 34.06% despite decelerating momentum. Prices fluctuated between 82.02 and 145.69, with moderate volatility (std deviation of 14.46).
Comparing both, Cirrus Logic outperformed Skyworks significantly, delivering positive market returns while Skyworks faced substantial depreciation over the past year.
Target Prices
The consensus target prices for Skyworks Solutions, Inc. and Cirrus Logic, Inc. reflect analysts’ optimistic outlooks.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Skyworks Solutions, Inc. | 140 | 60 | 85.11 |
| Cirrus Logic, Inc. | 155 | 100 | 138.75 |
Analysts expect Skyworks Solutions to rise from its current $58.46 toward the $85 consensus, while Cirrus Logic shows potential upside from $123.28 to $138.75. Both stocks present notable growth opportunities relative to current prices.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Skyworks Solutions, Inc. and Cirrus Logic, Inc.:
Rating Comparison
Skyworks Solutions, Inc. Rating
- Rating: B+, categorized as Very Favorable by analysts.
- Discounted Cash Flow Score: 4, indicating favorable valuation.
- ROE Score: 3, reflecting moderate efficiency in equity usage.
- ROA Score: 4, indicating favorable asset utilization.
- Debt To Equity Score: 3, representing moderate financial risk.
- Overall Score: 3, assessed as moderate overall financial standing.
Cirrus Logic, Inc. Rating
- Rating: A-, also classified as Very Favorable.
- Discounted Cash Flow Score: 4, indicating favorable valuation.
- ROE Score: 4, showing favorable efficiency in equity use.
- ROA Score: 5, suggesting very favorable asset utilization.
- Debt To Equity Score: 3, also indicating moderate financial risk.
- Overall Score: 4, evaluated as favorable overall financial standing.
Which one is the best rated?
Cirrus Logic holds a higher overall score (4 vs. 3) and better returns on equity and assets compared to Skyworks, suggesting stronger financial performance strictly based on the provided data.
Scores Comparison
The scores comparison between Skyworks Solutions, Inc. (SWKS) and Cirrus Logic, Inc. (CRUS) is as follows:
SWKS Scores
- Altman Z-Score: 4.44, indicating a safe zone with low bankruptcy risk.
- Piotroski Score: 7, reflecting strong financial health.
CRUS Scores
- Altman Z-Score: 11.94, indicating a safe zone with very low bankruptcy risk.
- Piotroski Score: 7, reflecting strong financial health.
Which company has the best scores?
Both SWKS and CRUS have strong Piotroski Scores of 7. However, CRUS has a significantly higher Altman Z-Score, suggesting a stronger financial stability and lower bankruptcy risk compared to SWKS based on the provided data.
Grades Comparison
Here is a comparison of the recent grades for Skyworks Solutions, Inc. and Cirrus Logic, Inc.:
Skyworks Solutions, Inc. Grades
The following table shows recent grades assigned by reputable financial institutions to Skyworks Solutions, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Mizuho | Upgrade | Neutral | 2025-11-11 |
| JP Morgan | Maintain | Neutral | 2025-11-05 |
| UBS | Maintain | Neutral | 2025-11-05 |
| Citigroup | Upgrade | Neutral | 2025-10-29 |
| Benchmark | Maintain | Hold | 2025-10-29 |
| Piper Sandler | Upgrade | Overweight | 2025-10-29 |
| Barclays | Upgrade | Equal Weight | 2025-10-29 |
| Keybanc | Upgrade | Overweight | 2025-10-29 |
| UBS | Maintain | Neutral | 2025-10-29 |
| Citigroup | Maintain | Sell | 2025-08-06 |
The overall trend for Skyworks Solutions shows multiple upgrades from underperform or sell ratings to neutral or overweight, reflecting a cautious improvement in sentiment.
Cirrus Logic, Inc. Grades
Below are the recent grades from recognized grading companies for Cirrus Logic, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Keybanc | Maintain | Overweight | 2025-11-05 |
| Barclays | Maintain | Equal Weight | 2025-11-05 |
| Stifel | Maintain | Buy | 2025-11-05 |
| Benchmark | Maintain | Buy | 2025-11-05 |
| Susquehanna | Maintain | Positive | 2025-10-22 |
| Stifel | Maintain | Buy | 2025-10-17 |
| Stifel | Maintain | Buy | 2025-09-12 |
| Barclays | Maintain | Equal Weight | 2025-05-07 |
| Barclays | Maintain | Equal Weight | 2025-04-22 |
| Stifel | Maintain | Buy | 2025-04-17 |
Cirrus Logic’s grades consistently show buy or overweight ratings with no recent downgrades, indicating sustained positive analyst sentiment.
Which company has the best grades?
Cirrus Logic, Inc. has generally received stronger and more consistent buy and overweight ratings compared to Skyworks Solutions, Inc., which has mostly neutral or hold grades with recent upgrades. This pattern may influence investor perception of growth potential and risk differently for each company.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for Skyworks Solutions, Inc. (SWKS) and Cirrus Logic, Inc. (CRUS) based on recent financial and competitive data.
| Criterion | Skyworks Solutions, Inc. (SWKS) | Cirrus Logic, Inc. (CRUS) |
|---|---|---|
| Diversification | Moderate product range, primarily in semiconductors for wireless communications | Focused on audio and mixed signal products, with strong presence in portable audio |
| Profitability | Moderate net margin (11.67%), but ROIC below WACC indicating value destruction | Strong profitability with 17.48% net margin and ROIC above WACC, creating value |
| Innovation | Innovation pace slower with declining ROIC trend (-67.9%) | Growing ROIC trend (+10.2%) signals improving innovation and competitive edge |
| Global presence | Established global footprint with steady market access | Global reach focused on niche audio markets, expanding product adoption |
| Market Share | Solid share in wireless semiconductor market but facing competitive pressures | Leading position in portable audio mixed-signal products with growing revenue |
Key takeaway: Cirrus Logic demonstrates a more favorable financial profile with growing profitability and innovation, while Skyworks struggles with declining returns and value destruction despite stable market presence. Investors should weigh Cirrus’s durable competitive advantage against Skyworks’s challenges in efficient capital use.
Risk Analysis
The table below summarizes key risks associated with Skyworks Solutions, Inc. (SWKS) and Cirrus Logic, Inc. (CRUS) for the year 2025, helping investors gauge their risk profiles.
| Metric | Skyworks Solutions, Inc. (SWKS) | Cirrus Logic, Inc. (CRUS) |
|---|---|---|
| Market Risk | Beta 1.30 indicates moderate volatility | Beta 1.08 suggests slightly lower volatility |
| Debt level | Low debt-to-equity ratio 0.21, favorable | Very low debt-to-equity ratio 0.07, favorable |
| Regulatory Risk | Exposure to US-China trade tensions | Moderate, due to fabless semiconductor model |
| Operational Risk | Large workforce (10,100), potential complexity | Smaller workforce (1,609), less operational complexity |
| Environmental Risk | Semiconductor manufacturing environmental impact | Lower direct manufacturing impact, fabless model |
| Geopolitical Risk | Significant exposure to Asia-Pacific markets | Exposure to global markets, some exposure to Asia |
In synthesis, both companies exhibit solid financial health with low debt and strong liquidity, minimizing bankruptcy risk. Skyworks faces moderate market and geopolitical risks due to higher beta and extensive Asia-Pacific operations. Cirrus Logic’s fabless model reduces operational and environmental risks but still faces market fluctuations. Investors should weigh geopolitical tensions and market volatility as the most impactful risks for both.
Which Stock to Choose?
Skyworks Solutions, Inc. (SWKS) shows a declining income trend with negative growth in revenue and net income over 2021-2025. Its financial ratios are slightly favorable overall, with strong liquidity and low debt, but return on equity is unfavorable. The company’s MOAT evaluation is very unfavorable, indicating value destruction and declining profitability, despite a very favorable rating of B+.
Cirrus Logic, Inc. (CRUS) exhibits favorable income growth, with positive revenue and net income trends over the same period. Its financial ratios are mostly favorable, including strong profitability ratios and low debt, though the current ratio is marked unfavorable. The MOAT evaluation is very favorable, signaling efficient capital use and durable competitive advantage, supported by a very favorable rating of A-.
For investors, Cirrus Logic may appear more favorable due to its consistent income growth, strong financial ratios, and robust MOAT, fitting growth-oriented or quality-focused profiles. Conversely, Skyworks Solutions might be seen as more suitable for those prioritizing liquidity and dividend yield despite income challenges. The choice could depend on the investor’s risk tolerance and strategy focus.
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 Skyworks Solutions, Inc. and Cirrus Logic, Inc. to enhance your investment decisions:
