In the fast-evolving semiconductor industry, Lattice Semiconductor Corporation (LSCC) and Skyworks Solutions, Inc. (SWKS) stand out as key players with overlapping markets and distinct innovation approaches. Both companies develop advanced chip technologies serving diverse sectors from communications to automotive, making their competitive dynamics compelling. This article will analyze their strengths and risks to help you decide which company could be the smarter addition to your investment portfolio.
Table of contents
Companies Overview
I will begin the comparison between Lattice Semiconductor Corporation and Skyworks Solutions, Inc. by providing an overview of these two companies and their main differences.
Lattice Semiconductor Corporation Overview
Lattice Semiconductor Corporation develops and sells semiconductor products globally, focusing on field programmable gate arrays and video connectivity application-specific standard products. The company serves original equipment manufacturers in communications, computing, consumer, industrial, and automotive markets. Headquartered in Hillsboro, Oregon, Lattice operates with a workforce of 1,110 employees and has a market cap of approximately 11.7B USD.
Skyworks Solutions, Inc. Overview
Skyworks Solutions, Inc. designs and manufactures proprietary semiconductor products, including amplifiers, tuners, and front-end modules, serving diverse sectors such as aerospace, automotive, broadband, and mobile devices. The company has a global presence with 10,100 employees and is headquartered in Irvine, California. Skyworks’ market capitalization stands near 8.8B USD, reflecting its established position in the semiconductor industry.
Key similarities and differences
Both companies operate in the semiconductor industry and sell their products worldwide, targeting multiple technology-driven markets. Lattice specializes in programmable gate arrays and IP licensing, whereas Skyworks offers a broader portfolio of proprietary analog and mixed-signal semiconductor products. Additionally, Lattice maintains a smaller workforce and higher market capitalization compared to Skyworks, reflecting differences in scale and product focus.
Income Statement Comparison
This table presents a side-by-side comparison of key income statement metrics for Lattice Semiconductor Corporation and Skyworks Solutions, Inc. for their most recent fiscal years.
| Metric | Lattice Semiconductor Corporation (2024) | Skyworks Solutions, Inc. (2025) |
|---|---|---|
| Market Cap | 11.7B | 8.8B |
| Revenue | 509M | 4.09B |
| EBITDA | 107M | 1.02B |
| EBIT | 61M | 554M |
| Net Income | 61M | 477M |
| EPS | 0.44 | 3.09 |
| Fiscal Year | 2024 | 2025 |
Income Statement Interpretations
Lattice Semiconductor Corporation
From 2020 to 2024, Lattice Semiconductor showed a revenue growth of 24.82% and net income growth of 28.99%, with stable margins overall. The firm maintained a strong gross margin of 66.82% and a net margin of 12.0%. However, in 2024, revenue fell sharply by 30.9%, and net income declined by 65.85%, indicating a recent slowdown despite generally favorable profitability metrics.
Skyworks Solutions, Inc.
Skyworks Solutions experienced declining revenue and net income over the 2021-2025 period, with overall revenue down 20.01% and net income down 68.16%. Margins, including a gross margin of 41.16% and net margin of 11.67%, remained favorable but contracted in the last year. The 2025 fiscal year showed a modest 2.18% revenue decline and a 18.17% drop in net margin, signaling ongoing margin pressure.
Which one has the stronger fundamentals?
Lattice Semiconductor exhibits stronger fundamentals supported by positive long-term growth in revenue and net income and consistently favorable margins, despite a notable recent downturn. Conversely, Skyworks Solutions faces persistent declines in revenue, net income, and margins, with unfavorable overall growth trends. Therefore, Lattice’s income statement performance appears more robust over the evaluated period.
Financial Ratios Comparison
The following table compares key financial ratios of Lattice Semiconductor Corporation (LSCC) and Skyworks Solutions, Inc. (SWKS) based on their most recent fiscal year data.
| Ratios | Lattice Semiconductor Corporation (LSCC) 2024 | Skyworks Solutions, Inc. (SWKS) 2025 |
|---|---|---|
| ROE | 8.60% | 8.29% |
| ROIC | 4.59% | 6.35% |
| P/E | 133 | 25 |
| P/B | 11.41 | 2.07 |
| Current Ratio | 3.66 | 2.33 |
| Quick Ratio | 2.62 | 1.76 |
| D/E (Debt-to-Equity) | 0.02 | 0.21 |
| Debt-to-Assets | 1.81% | 15.20% |
| Interest Coverage | 130 | 18.45 |
| Asset Turnover | 0.60 | 0.52 |
| Fixed Asset Turnover | 7.62 | 2.95 |
| Payout Ratio | 0% | 90.7% |
| Dividend Yield | 0% | 3.63% |
Interpretation of the Ratios
Lattice Semiconductor Corporation
Lattice Semiconductor shows a mixed ratio profile with a strong net margin at 12% but unfavorable returns on equity (8.6%) and invested capital (4.59%) relative to its weighted average cost of capital (11.86%). High valuation multiples like a PE of 132.74 and PB of 11.41 raise concerns, while liquidity is mixed with a strong quick ratio but a less favorable current ratio. The company does not pay dividends, likely reinvesting earnings into research and development, given the absence of payout and focus on growth.
Skyworks Solutions, Inc.
Skyworks Solutions presents generally favorable financial ratios including a net margin of 11.67%, moderate returns on equity (8.29%) and invested capital (6.35%), and a reasonable weighted average cost of capital at 9.14%. Valuation metrics such as a PE of 24.95 and PB of 2.07 are more moderate compared to peers. Strong liquidity and low debt levels support financial stability. The company pays dividends with a 3.63% yield, indicating shareholder returns through both dividends and possibly share buybacks.
Which one has the best ratios?
Skyworks Solutions exhibits a more balanced and slightly favorable ratio profile with moderate valuation, good liquidity, and dividend payments. In contrast, Lattice Semiconductor’s ratios are slightly unfavorable due to high valuation multiples and lower returns compared to its cost of capital, despite a strong net margin. Overall, Skyworks’ ratios suggest comparatively better financial health and shareholder return metrics.
Strategic Positioning
This section compares the strategic positioning of Lattice Semiconductor Corporation and Skyworks Solutions, Inc., focusing on market position, key segments, and exposure to technological disruption:
Lattice Semiconductor Corporation
- Mid-sized semiconductor firm facing competitive pressure within the technology sector.
- Focuses on field programmable gate arrays and video connectivity products, mainly serving communications, computing, and automotive sectors.
- Exposure linked to evolving semiconductor technologies with licensing and IP monetization components.
Skyworks Solutions, Inc.
- Smaller market cap but diversified semiconductor company with broad industry presence.
- Offers a wide product portfolio including amplifiers, converters, and modules across aerospace, automotive, broadband, and consumer electronics.
- Broad exposure to semiconductor innovation across multiple applications, with a strong IP and proprietary technology base.
Lattice Semiconductor Corporation vs Skyworks Solutions, Inc. Positioning
Lattice Semiconductor appears more specialized with a focus on programmable gate arrays and licensing, while Skyworks operates a more diversified product and market portfolio. Lattice’s narrower target markets contrast with Skyworks’ broad industrial and consumer applications, suggesting different strategic focuses.
Which has the best competitive advantage?
Both companies exhibit a very unfavorable MOAT status, showing declining ROIC and value destruction. Neither currently demonstrates a strong competitive advantage based on profitability and capital efficiency metrics.
Stock Comparison
The stock prices of Lattice Semiconductor Corporation (LSCC) and Skyworks Solutions, Inc. (SWKS) have shown contrasting dynamics over the past year, with LSCC demonstrating significant gains and SWKS experiencing notable declines.
Trend Analysis
Lattice Semiconductor Corporation (LSCC) exhibits a bullish trend over the past 12 months, with a 14.02% price increase and accelerating growth. The price fluctuated between 39.03 and 85.23, with moderate volatility (std deviation 11.01).
Skyworks Solutions, Inc. (SWKS) shows a bearish trend with a 43.71% decline over the same period, accompanied by deceleration and higher volatility (std deviation 16.35). The stock ranged from 52.78 to 116.18.
Comparatively, LSCC outperformed SWKS, delivering positive returns while SWKS experienced substantial losses, reflecting the strongest market performance among the two.
Target Prices
Analysts present a mixed but cautiously optimistic target price consensus for these semiconductor companies.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Lattice Semiconductor Corporation | 105 | 65 | 83 |
| Skyworks Solutions, Inc. | 140 | 60 | 85.11 |
The consensus target prices for Lattice Semiconductor and Skyworks Solutions slightly exceed their current market prices, indicating modest upside potential with some risk given the broad target ranges.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Lattice Semiconductor Corporation and Skyworks Solutions, Inc.:
Rating Comparison
LSCC Rating
- Rating: B-, considered very favorable overall.
- Discounted Cash Flow Score: 3, indicating a moderate valuation based on future cash flows.
- ROE Score: 2, a moderate measure of profit generation efficiency from equity.
- ROA Score: 3, moderate effectiveness in asset utilization to generate earnings.
- Debt To Equity Score: 4, favorable indication of low financial risk and strong balance sheet.
- Overall Score: 2, a moderate summary of the company’s financial standing.
SWKS Rating
- Rating: B+, also considered very favorable overall.
- Discounted Cash Flow Score: 4, showing a favorable valuation based on future cash flows.
- ROE Score: 3, a moderate score indicating better efficiency in profit generation from equity.
- ROA Score: 4, favorable effectiveness in utilizing assets for earnings.
- Debt To Equity Score: 3, moderate indication of financial risk and balance sheet strength.
- Overall Score: 3, a moderate but higher summary of financial standing than LSCC.
Which one is the best rated?
Based on the provided data, Skyworks Solutions (SWKS) holds a higher overall rating (B+) and scores more favorably on discounted cash flow, ROE, and ROA compared to Lattice Semiconductor (LSCC), which has a lower overall score and rating (B-).
Scores Comparison
Here is a comparison of the financial health scores for Lattice Semiconductor Corporation and Skyworks Solutions, Inc.:
LSCC Scores
- Altman Z-Score: 52.69, indicating a strong safe zone
- Piotroski Score: 5, reflecting average financial health
SWKS Scores
- Altman Z-Score: 4.44, also in the safe zone
- Piotroski Score: 7, showing strong financial health
Which company has the best scores?
Skyworks Solutions presents a strong Piotroski Score of 7, outperforming Lattice Semiconductor’s average score of 5, while both are in the safe zone for Altman Z-Score. Based on these scores, Skyworks shows comparatively stronger overall financial health.
Grades Comparison
Here is a comparison of recent grades and ratings from recognized grading companies for both companies:
Lattice Semiconductor Corporation Grades
This table summarizes recent grades assigned by reputable grading companies for Lattice Semiconductor Corporation.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Keybanc | Maintain | Overweight | 2026-01-13 |
| Stifel | Maintain | Buy | 2025-11-04 |
| Baird | Maintain | Outperform | 2025-11-04 |
| Needham | Maintain | Buy | 2025-11-04 |
| Rosenblatt | Maintain | Buy | 2025-11-04 |
| Benchmark | Maintain | Buy | 2025-11-04 |
| Susquehanna | Maintain | Positive | 2025-10-22 |
| Keybanc | Maintain | Overweight | 2025-09-30 |
| Needham | Maintain | Buy | 2025-09-22 |
| Benchmark | Maintain | Buy | 2025-09-11 |
Lattice Semiconductor’s grades consistently show strong buy-side recommendations, with multiple firms maintaining “Buy” or equivalent ratings over recent months.
Skyworks Solutions, Inc. Grades
This table summarizes recent grades assigned by reputable grading companies for 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 |
Skyworks’ grades reflect a more mixed outlook, with several recent upgrades from “Sell” or “Underperform” to “Neutral” or “Overweight,” indicating some improvement but still a range of hold and neutral ratings.
Which company has the best grades?
Lattice Semiconductor has received predominantly strong buy-side grades, showing consistent confidence from analysts, while Skyworks Solutions has a more varied rating profile with several neutral and hold ratings. Investors may interpret Lattice’s stronger consensus as a signal of higher analyst conviction compared to Skyworks’ mixed outlook.
Strengths and Weaknesses
Below is a comparison of the key strengths and weaknesses of Lattice Semiconductor Corporation (LSCC) and Skyworks Solutions, Inc. (SWKS) based on recent financial and operational data.
| Criterion | Lattice Semiconductor Corporation (LSCC) | Skyworks Solutions, Inc. (SWKS) |
|---|---|---|
| Diversification | Moderate; relies heavily on product revenue from distributors with some license/service income | Moderate; diverse product portfolio but less detailed recent segmentation data |
| Profitability | Net margin 12%, ROIC 4.59% (below WACC 11.86%), value destroying | Net margin 11.67%, ROIC 6.35% (near WACC 9.14%), slightly better profitability |
| Innovation | High fixed asset turnover (7.62) indicates efficient use of innovation assets | Moderate fixed asset turnover (2.95), innovation deployment less aggressive |
| Global presence | Strong distributor network globally, but declining ROIC signals difficulties | Global presence supported by steady ratios and dividend yield, stable operations |
| Market Share | Challenged by declining profitability and high valuation multiples (PE 132.74, PB 11.41) | More balanced valuation (PE 24.95, PB 2.07) suggesting stronger market position |
Key takeaways: Both companies are currently value destroyers with declining ROIC trends, but Skyworks Solutions shows relatively better profitability metrics, valuation, and financial health. Investors should exercise caution with LSCC given its unfavorable capital efficiency and higher risk profile.
Risk Analysis
Below is a comparative risk assessment of Lattice Semiconductor Corporation (LSCC) and Skyworks Solutions, Inc. (SWKS) based on the most recent data from 2025-2026.
| Metric | Lattice Semiconductor Corporation (LSCC) | Skyworks Solutions, Inc. (SWKS) |
|---|---|---|
| Market Risk | High beta (1.716) indicates greater volatility compared to the market | Moderate beta (1.297), less volatile |
| Debt Level | Very low debt-to-equity ratio (0.02), low debt-to-assets (1.81%) | Moderate debt-to-equity (0.21), debt-to-assets (15.2%) |
| Regulatory Risk | Moderate, with global semiconductor regulations | Moderate, with exposure to multiple international markets |
| Operational Risk | Smaller workforce (1.1K employees) with niche FPGA products | Larger workforce (10.1K employees), diversified product portfolio |
| Environmental Risk | Typical for semiconductor manufacturing, but no major issues reported | Similar industry risks, with ongoing sustainability initiatives |
| Geopolitical Risk | Exposure to Asia, Europe, Americas; supply chain sensitivities | Global footprint including China and Asia-Pacific; geopolitical tensions possible |
The most impactful risks for LSCC stem from its high market volatility and a somewhat unfavorable valuation, despite low debt levels and strong liquidity. SWKS shows moderate market risk but stronger financial ratios and dividend yield, offsetting some geopolitical exposure. Investors should watch for semiconductor industry cyclicality and supply chain disruptions affecting both.
Which Stock to Choose?
Lattice Semiconductor Corporation (LSCC) shows a favorable income statement with a 12.0% net margin but faces a significant one-year revenue decline of -30.9%. Its financial ratios are slightly unfavorable overall, with a high P/E of 132.74 and a moderate return on equity of 8.6%. Debt levels are low, and the company holds a very favorable B- rating despite a very unfavorable economic moat due to declining ROIC.
Skyworks Solutions, Inc. (SWKS) exhibits a slightly favorable financial ratios profile and a very favorable B+ rating. Its income statement is less favorable, with an 11.67% net margin but negative growth trends overall. Debt metrics are moderate but manageable. The company’s economic moat is also very unfavorable, reflecting declining profitability and ROIC below WACC.
Investors prioritizing financial stability and moderate valuation might find SWKS more favorable, given its slightly better ratio evaluation and strong ratings. Conversely, growth-focused investors could interpret LSCC’s favorable income metrics and low debt as potential opportunities, despite its valuation challenges and negative moat signals. Both companies show value destruction trends, suggesting cautious interpretation based on risk tolerance.
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 Lattice Semiconductor Corporation and Skyworks Solutions, Inc. to enhance your investment decisions:
