The shares of Skyworks Solutions, Inc. (NASDAQ:SWKS) and OGE Energy Corporation (NYSE:OGE) were among the active stocks of the last trading sessions. Skyworks Solutions, Inc. (NASDAQ:SWKS) soared to 0.91% closing at the price of $83.4 whereas the shares of OGE Energy Corporation (NYSE:OGE) soared 0.67% with the increase of 0.25 points closing at the price of $37.7. Skyworks Solutions, Inc. has currently decrease -14.03% in its stock over the period of 6-months while its rival OGE Energy Corporation added 10.14% in the previous 6-months.
Now we have to analyze the facts that if the stocks were worthy off investors’ money? The facts to analyze here are risks, profitability, returns and price trends.
Returns and Profitability
Profitability and returns are the main reason of investment, the investors are looking for profits that they get and return they should expect over the period of time.
The first and foremost return that is considered while making an investment is the ROI or Return on Investment. The ROI is the ratio between the profit against the cost of investment. Currently the ROI of Skyworks Solutions, Inc. (NASDAQ:SWKS) is 24.8% while the ROI of OGE Energy Corporation (NYSE:OGE) is 4.5%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, SWKS’s EBITDA Margin is 8.51 whereas OGE’s is 12.92.
Both the profitability ratios suggest a mixed sentiment for Skyworks Solutions, Inc. (NASDAQ:SWKS) and OGE Energy Corporation (NYSE:OGE).
EPS & Surprise Factor
Skyworks Solutions, Inc. (NASDAQ:SWKS) reported $1.94/share EPS for the previous quarter where analysts were predicting an EPS to be $1.92/share Thus beating the analyst Estimates with a Surprise Factor of 1 Percent. While, OGE Energy Corporation (NYSE:OGE) reported EPS of $1.02/share in the last quarter. The analysts projected EPS of $0.94/share depicting a Surprise of 8.5 Percent.
Taking a look at Earnings per Share, OGE Energy Corporation tends to be beating the analyst estimates more than Skyworks Solutions, Inc.. so OGE is more profitable than SWKS.
Technical Analysis of Skyworks Solutions, Inc. & OGE Energy Corporation
Moving average convergence divergence (MACD) shows that Skyworks Solutions, Inc. (NASDAQ:SWKS) is on a PRICE RELATIVITY trend While OGE Energy Corporation (NYSE:OGE) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Skyworks Solutions, Inc. was in BEARISH territory and OGE Energy Corporation was in BULLISH territory.
SWKS’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While OGE’s candle is BEARISH with HIGH.
EPS Growth Rate: SWKS’s 13.03% versus OGE’s -2.35%
Another shareholder value can be analyzed through the EPS growth rate; the next 5 years EPS growth rate is predicted by the analysts after the analyzing the previous trends. The next 5 year EPS growth rate of Skyworks Solutions, Inc. (NASDAQ:SWKS) is predicted at 13.03% while OGE Energy Corporation (NYSE:OGE) stands at -2.35%. These numbers suggest that SWKS is more suitable investment in terms of EPS growth rate.
Financial Risk and Liquidity Concerns
The current ratio and the debt ratio are the two ratios that show the investor how quickly the company is able to payout its debt and how quickly it can cover its obligations. The current ratio of SWKS stands at 7.3 while OGE is at 0.4 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.82.
The values of the both ratios suggest that one is more liquid and other investment is more risk free.
While making an investment, another main factor to consider before investing is the analyst recommendation on the scale of 1 to 5 where 1 is strong buy, 2 is buy, 3 is hold, 4 is Sell and 5 is strong sell. Analyst recommend 2.1 for SWKS and 2.7 for OGE which means SWKS has Hold rating whereas OGE has Hold rating.
Another recommendation of analyst that is to be considered worthy is the price target. The mare price or price trend does not suggest the suitability of a stock. The price target set by analyst is also to be considered while investing as it suggests to what extent the stock will rise or fall in the near future. The price target set for SWKS is $115.29 which is 27.66% of its current price while OGE has price target of 37.57 which is -0.35% of its current price.
Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.
SWKS currently has price to earning P/E ratio of 13.15 whereas OGE has 18.94 while the forward P/E ratio for the prior stands at 10.63 and for the later it depicts the value of 17.74.
The price to Book P/B for SWKS is 3.7, Price to Sale is at 4.08 and for OGE these ratios stand at 1.94 and 3.33.