Monolithic Power Systems, Inc. (MPWR) and Skyworks Solutions, Inc. (SWKS) are two prominent players in the semiconductor industry, each specializing in power electronics and wireless communication components. Both companies serve overlapping markets such as automotive, industrial, and consumer electronics, while pursuing innovation-driven growth strategies. This comparison aims to clarify which company presents a more compelling investment opportunity for your portfolio in today’s dynamic tech landscape. Let’s dive in to find out which stands out.
Table of contents
Companies Overview
I will begin the comparison between Monolithic Power Systems and Skyworks Solutions by providing an overview of these two companies and their main differences.
Monolithic Power Systems Overview
Monolithic Power Systems, Inc. focuses on designing and marketing semiconductor-based power electronics for diverse markets, including computing, automotive, industrial, and consumer electronics. It specializes in DC to DC integrated circuits and lighting control ICs, serving global customers through distributors and direct sales. Founded in 1997 and headquartered in Kirkland, WA, it holds a strong position in power management semiconductor solutions.
Skyworks Solutions Overview
Skyworks Solutions, Inc. develops and manufactures a broad range of proprietary semiconductor products, including amplifiers, filters, and converters, targeting aerospace, automotive, broadband, and mobile device markets. Established in 1962 and based in Irvine, CA, it serves global clients via direct sales and distributors. Skyworks is recognized for its extensive product portfolio supporting wireless and analog systems.
Key similarities and differences
Both companies operate in the semiconductor industry and serve global markets with a focus on high-tech electronic components. Monolithic Power Systems emphasizes power management ICs and lighting control, while Skyworks offers a wider product range including amplifiers and front-end modules for communications and automotive sectors. Their sales strategies overlap through direct and distributor channels, but their product specialization distinguishes their market approaches.
Income Statement Comparison
This table compares key income statement metrics for Monolithic Power Systems, Inc. and Skyworks Solutions, Inc. based on their most recent fiscal year data.
| Metric | Monolithic Power Systems, Inc. | Skyworks Solutions, Inc. |
|---|---|---|
| Market Cap | 48.4B | 8.8B |
| Revenue | 2.21B | 4.09B |
| EBITDA | 576M | 1.02B |
| EBIT | 539M | 554M |
| Net Income | 1.79B | 477M |
| EPS | 36.76 | 3.09 |
| Fiscal Year | 2024 | 2025 |
Income Statement Interpretations
Monolithic Power Systems, Inc.
Monolithic Power Systems exhibited strong revenue growth from $844M in 2020 to $2.21B in 2024, with net income surging from $164M to $1.79B. Margins improved significantly, with gross margin at 55.32% and net margin reaching 80.95% in 2024. The latest year showed a robust 21.2% revenue increase, while net margin and EPS growth accelerated sharply, reflecting operational efficiency.
Skyworks Solutions, Inc.
Skyworks Solutions experienced declining revenue from $5.11B in 2021 to $4.09B in 2025, with net income decreasing from $1.50B to $477M. Despite favorable gross and EBIT margins (41.16% and 13.55%), recent year performance weakened, showing a 2.18% revenue decline and a net margin drop to 11.67%. EBIT and EPS also contracted, indicating margin pressure and slowing growth.
Which one has the stronger fundamentals?
Monolithic Power Systems demonstrates stronger fundamentals with consistent revenue and net income growth, expanding margins, and favorable income statement metrics in over 90% of evaluations. In contrast, Skyworks Solutions faces overall declines in key financial measures and unfavorable growth trends, reflected in over 70% negative income statement evaluations, suggesting weaker recent operational performance.
Financial Ratios Comparison
Below is a comparison of key financial ratios for Monolithic Power Systems, Inc. (MPWR) and Skyworks Solutions, Inc. (SWKS) based on the most recent fiscal year data available.
| Ratios | Monolithic Power Systems, Inc. (MPWR) | Skyworks Solutions, Inc. (SWKS) |
|---|---|---|
| ROE | 56.8% | 8.3% |
| ROIC | 16.2% | 6.4% |
| P/E | 16.1 | 25.0 |
| P/B | 9.14 | 2.07 |
| Current Ratio | 5.31 | 2.33 |
| Quick Ratio | 3.89 | 1.76 |
| D/E (Debt to Equity) | 0.005 | 0.209 |
| Debt-to-Assets | 0.44% | 15.2% |
| Interest Coverage | N/A | 18.5 |
| Asset Turnover | 0.61 | 0.52 |
| Fixed Asset Turnover | 4.17 | 2.95 |
| Payout Ratio | 13.5% | 90.7% |
| Dividend Yield | 0.84% | 3.63% |
Interpretation of the Ratios
Monolithic Power Systems, Inc.
Monolithic Power Systems shows strong profitability with a net margin of 80.95% and an impressive ROE of 56.8%, highlighting efficient capital use. However, the high price-to-book ratio (9.14) and current ratio (5.31) raise some concerns about valuation and liquidity management. The company pays dividends with a modest yield of 0.84%, suggesting cautious distribution relative to its cash flow.
Skyworks Solutions, Inc.
Skyworks Solutions has a favorable net margin of 11.67% but a lower ROE of 8.29%, indicating less efficient equity returns. Its liquidity ratios, including a current ratio of 2.33 and interest coverage of 20.44, are solid, supporting financial stability. The dividend yield of 3.63% is attractive and well-supported, reflecting a shareholder-friendly policy with manageable risks.
Which one has the best ratios?
Monolithic Power Systems exhibits stronger profitability and return metrics but faces valuation and liquidity concerns. Skyworks Solutions offers a more balanced profile with moderate profitability, solid liquidity, and a higher dividend yield with fewer unfavorable ratios. Overall, Monolithic Power’s ratios are more favorable, yet Skyworks presents a more conservative financial structure.
Strategic Positioning
This section compares the strategic positioning of Monolithic Power Systems (MPWR) and Skyworks Solutions (SWKS) including market position, key segments, and exposure to technological disruption:
Monolithic Power Systems, Inc.
- Large market cap of $48.4B, faces competitive pressure in the semiconductor industry
- Focuses on DC to DC power conversion and lighting control ICs serving computing, automotive, industrial, and consumer markets
- Exposure to disruption through integrated circuits in evolving electronics and power management systems
Skyworks Solutions, Inc.
- Smaller market cap of $8.8B, competes broadly in semiconductors with diverse product lines
- Broad semiconductor product portfolio including amplifiers, tuners, and filters for aerospace, automotive, broadband, and smartphones
- Faces technological disruption risks across multiple semiconductor product categories in fast-changing communications and industrial sectors
Monolithic Power Systems vs Skyworks Solutions Positioning
MPWR has a concentrated focus on power electronics and lighting control ICs, providing specialization advantages but less diversification. SWKS operates a broad semiconductor portfolio across multiple end markets, offering diversification but facing complexity and varied disruption risks.
Which has the best competitive advantage?
MPWR demonstrates a very favorable MOAT with growing ROIC and clear value creation, indicating a durable competitive advantage. SWKS shows a very unfavorable MOAT with declining ROIC, signaling value destruction and weaker competitive positioning.
Stock Comparison
The stock price chart over the past 12 months reveals contrasting dynamics between Monolithic Power Systems, Inc. and Skyworks Solutions, Inc., with significant divergence in price performance and trading volumes.
Trend Analysis
Monolithic Power Systems, Inc. experienced a strong bullish trend over the past year, with a 39.99% price increase and accelerating momentum. The stock ranged between 477.39 and 1074.91, showing high volatility with a standard deviation of 135.81.
Skyworks Solutions, Inc. showed a bearish trend over the same period, declining 43.71% with decelerating downward momentum. Its price fluctuated between 52.78 and 116.18, with lower volatility reflected by a 16.35 standard deviation.
Comparing both stocks, Monolithic Power Systems delivered the highest market performance with a substantial price gain, while Skyworks Solutions faced notable losses and weaker trading dynamics.
Target Prices
The analyst consensus shows a positive outlook for Monolithic Power Systems, Inc. and a cautious stance for Skyworks Solutions, Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Monolithic Power Systems, Inc. | 1375 | 1025 | 1187.5 |
| Skyworks Solutions, Inc. | 140 | 60 | 85.11 |
Monolithic Power Systems’ consensus target of 1187.5 is notably above its current price of 1009.54, indicating expected growth potential. Conversely, Skyworks Solutions’ consensus target of 85.11 is above the current price of 58.46, suggesting possible upside despite recent price weakness.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Monolithic Power Systems, Inc. (MPWR) and Skyworks Solutions, Inc. (SWKS):
Rating Comparison
MPWR Rating
- Rating: A- with a very favorable status reflecting strong overall financial health.
- Discounted Cash Flow Score: 3, considered moderate for valuation assessment.
- ROE Score: 5, very favorable, showing excellent profit generation from equity.
- ROA Score: 5, very favorable, demonstrating highly effective asset utilization.
- Debt To Equity Score: 5, very favorable, indicating a strong balance sheet.
- Overall Score: 4, favorable, highlighting strong overall financial performance.
SWKS Rating
- Rating: B+ with a very favorable status indicating solid financial standing.
- Discounted Cash Flow Score: 4, favorable, suggesting better valuation outlook.
- ROE Score: 3, moderate, indicating average efficiency in profit generation.
- ROA Score: 4, favorable, showing good asset utilization capabilities.
- Debt To Equity Score: 3, moderate, showing moderate financial risk.
- Overall Score: 3, moderate, reflecting average overall financial strength.
Which one is the best rated?
Based strictly on the data, MPWR is better rated with an A- rating and higher scores in ROE, ROA, debt to equity, and overall score. SWKS shows moderate to favorable scores but trails MPWR in key financial efficiency and risk metrics.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for the two companies:
MPWR Scores
- Altman Z-Score: 46.83, well within the safe zone.
- Piotroski Score: 4, indicating average financial strength.
SWKS Scores
- Altman Z-Score: 4.44, also in the safe zone.
- Piotroski Score: 7, indicating strong financial health.
Which company has the best scores?
SWKS shows a safer financial position with a strong Piotroski Score of 7 compared to MPWR’s average score of 4, despite both being in the safe Altman Z-Score zone.
Grades Comparison
Here is a comparison of the latest reliable grades for Monolithic Power Systems, Inc. and Skyworks Solutions, Inc.:
Monolithic Power Systems, Inc. Grades
The following table presents recent grades assigned by notable grading companies to Monolithic Power Systems, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Truist Securities | Maintain | Buy | 2025-12-19 |
| Citigroup | Maintain | Buy | 2025-11-03 |
| TD Cowen | Maintain | Buy | 2025-10-31 |
| Keybanc | Maintain | Overweight | 2025-10-31 |
| Rosenblatt | Maintain | Neutral | 2025-10-31 |
| Keybanc | Maintain | Overweight | 2025-10-23 |
| Wells Fargo | Maintain | Equal Weight | 2025-10-20 |
| Stifel | Maintain | Buy | 2025-10-17 |
| Wolfe Research | Upgrade | Outperform | 2025-10-14 |
| Citigroup | Maintain | Buy | 2025-10-03 |
Grades for Monolithic Power Systems, Inc. predominantly indicate a positive outlook, with numerous “Buy” and “Overweight” ratings and a recent upgrade to “Outperform.”
Skyworks Solutions, Inc. Grades
The following table shows recent grades assigned by recognized grading companies 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 |
Skyworks Solutions, Inc. shows a mixed but improving trend with several upgrades from “Underperform” and “Sell” to “Neutral” and “Overweight.”
Which company has the best grades?
Monolithic Power Systems, Inc. has consistently received stronger grades, including multiple “Buy” and “Overweight” ratings and an “Outperform” upgrade, compared to Skyworks Solutions, Inc., whose grades range mostly from “Neutral” to “Overweight.” This suggests a more favorable analyst sentiment for Monolithic Power Systems, potentially indicating higher confidence from the investment community.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for Monolithic Power Systems, Inc. (MPWR) and Skyworks Solutions, Inc. (SWKS) based on recent financial performance and strategic positioning.
| Criterion | Monolithic Power Systems, Inc. (MPWR) | Skyworks Solutions, Inc. (SWKS) |
|---|---|---|
| Diversification | Focused on DC to DC power products with steady growth; limited product range | More diversified in semiconductor solutions; broader product portfolio |
| Profitability | Very high net margin (80.95%), strong ROE (56.8%), favorable ROIC (16.22%) | Moderate net margin (11.67%), lower ROE (8.29%), neutral ROIC (6.35%) |
| Innovation | Demonstrates durable competitive advantage with growing ROIC and innovation in power management | Declining ROIC trend indicates challenges in maintaining innovation edge |
| Global presence | Strong with emphasis on power management globally | Established global footprint but profitability challenges limit expansion |
| Market Share | Growing market share in power electronics segment | Stable but facing competitive pressure affecting market share growth |
Monolithic Power Systems shows robust profitability and a strong competitive moat with a focus on power management products, making it a value creator. In contrast, Skyworks Solutions faces declining profitability and value erosion, signaling caution despite its diversified portfolio.
Risk Analysis
Below is a comparison of key risks for Monolithic Power Systems, Inc. (MPWR) and Skyworks Solutions, Inc. (SWKS) based on the most recent data available:
| Metric | Monolithic Power Systems, Inc. (MPWR) | Skyworks Solutions, Inc. (SWKS) |
|---|---|---|
| Market Risk | High beta (1.456) indicates above-average volatility | Moderate beta (1.297), somewhat less volatile |
| Debt level | Very low debt-to-equity (0.01), strong balance sheet | Moderate debt-to-equity (0.21), manageable leverage |
| Regulatory Risk | Moderate, global sales expose to diverse regulations | Moderate, with broad international market exposure |
| Operational Risk | Low, strong operational metrics and high asset turnover | Moderate, with average asset turnover and operational scale |
| Environmental Risk | Moderate, semiconductor industry impacts and regulations | Moderate, similar industry exposure and compliance demands |
| Geopolitical Risk | Elevated due to significant sales in Asia-Pacific | Elevated, with exposure to multiple global regions |
The most impactful and likely risks for these companies are market volatility and geopolitical tensions affecting supply chains and sales in Asia. MPWR’s low debt and strong financial health mitigate financial risk, whereas SWKS carries moderate leverage but benefits from a strong Piotroski score indicating good operational strength. Investors should monitor international trade policies and semiconductor industry cycles closely.
Which Stock to Choose?
Monolithic Power Systems, Inc. (MPWR) shows strong income growth with a 21.2% revenue increase in 2024 and very favorable profitability ratios, including an 80.95% net margin and 56.8% ROE. Its low debt and a very favorable rating (A-) reflect solid financial health and a durable competitive advantage with a very favorable moat status.
Skyworks Solutions, Inc. (SWKS) faces declining income, with a -2.18% revenue change in 2025 and mostly unfavorable growth metrics. While it maintains favorable liquidity and a safe zone Altman Z-Score, its ROE is low at 8.29%, and the company is shedding value with a very unfavorable moat rating. Its overall rating is slightly less favorable (B+).
Investors seeking growth might find MPWR attractive due to its robust profitability, strong income evolution, and durable competitive advantage. Conversely, those prioritizing stability and moderate risk exposure could view SWKS’s safer financial scores and dividend yield as more aligned with their investment profile.
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 Monolithic Power Systems, Inc. and Skyworks Solutions, Inc. to enhance your investment decisions:
