JP Morgan Chase & Co. (JPM) vs Skyworks Solutions, Inc. (SWKS): Which Is the Better Buy in 2026?
As of 2026-08-03, JPM is undervalued at $352, with a DCF intrinsic value of $1411518993158 and a margin of safety of 100%. SWKS is undervalued at $62, with an intrinsic value of $114 and a margin of safety of 45%. Of the two, JPM has the wider margin of safety.
Rewards
- ★JP Morgan Chase & Co. scores 90/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
- ★Each dollar of retained earnings has created $1.79 of earning power — management is creating shareholder value.
- ★FCF yield of 11.5% is historically attractive — the business generates significant cash relative to its price.
- ★Altman Z-Score of 4.62 indicates very low bankruptcy risk — the company is firmly in the safe zone.
- ★Net debt/EBITDA of -0.1x means the company holds more cash than debt — a net cash position.
Risks
- ⚠Gross margin of 0.0% is low, suggesting a competitive or commodity-like market with limited pricing power.
- ⚠Altman Z-Score of 0.17 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
- ⚠5 insider sales totaling $8.1M with no purchases in the past 3 months — insiders are reducing their exposure.
- ⚠ROIC has declined by 10.2 percentage points over the past 4 years, which may signal competitive erosion.
- ⚠Trailing P/E of 32.3x is 74% above the historical average of 18.5x — the stock trades at a premium to its own history.
- ⚠PEG ratio of 8.67 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
Key Valuation Metrics
Learn more →Historical Fundamentals
Learn more →Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
$1 Retained Earnings Test
Learn more →> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Discounted Cash Flow (DCF) Analysis
Learn more →Reverse DCF — Market-Implied Growth
Learn more →Requires positive FCF to compute implied growth rate.
What growth rate is the market pricing in at $62?
The market implies +1.8% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding -4.0%, reflecting heavy growth investment.
Economic Moat Score
Learn more →Wide moat driven primarily by revenue predictability. Reinvestment Efficiency is the area most vulnerable to competitive pressure.
Narrow moat with reinvestment efficiency as the key competitive advantage. Improving margin stability would strengthen the moat.
Forensic Accounting
Learn more →M-Score Trend
M-Score Trend
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
Ownership Breakdown
Learn more →High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.
Insider Buying Activity
Learn more →Open market purchases · includes direct & indirect ownership · excludes option exercises.
Insider Selling Activity
Learn more →Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.
🎭 Mr. Market's Mood
Learn more →"Market is optimistic — be cautious and ensure you have a margin of safety"
"Market is pessimistic — investigate whether fears are temporary or structural"
Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
⚖️ Buffett Signal
Learn more →The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
Frequently Asked Questions: JPM vs SWKS
Is JP Morgan Chase & Co. or Skyworks Solutions, Inc. more undervalued in 2026?▼
Based on our discounted cash flow model, JPM trades at a 100.0% margin of safety (intrinsic value $1411518993158 vs. price $352), compared to SWKS's 45.3% margin of safety (intrinsic $114 vs. $62).
Which stock has a wider economic moat, JP Morgan Chase & Co. or Skyworks Solutions, Inc.?▼
JPM scores 90/100 (Wide moat), while SWKS scores 48/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.
Is JP Morgan Chase & Co. in financial distress?▼
JPM's Altman Z-Score of 0.2 places it in the Distress zone, signaling elevated bankruptcy risk. SWKS scores 4.6 (Safe zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.
Which stock has higher return on invested capital, JP Morgan Chase & Co. or Skyworks Solutions, Inc.?▼
JPM earns 5.6% ROIC versus SWKS's 4.4%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.
Which dividend is safer, JP Morgan Chase & Co.'s or Skyworks Solutions, Inc.'s?▼
JPM's dividend earns a safety score of 76/100 (Safe), compared to SWKS's 64/100 (Safe). JPM has raised its dividend for 2 consecutive years.