Semtech (NASDAQ: SMTC) and MaxLinear (NYSE:MXL) are both technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.
Valuation and Earnings
This table compares Semtech and MaxLinear’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Semtech||$544.27 million||4.20||$54.66 million||$0.68||50.66|
|MaxLinear||$420.32 million||3.74||-$9.18 million||($0.15)||-155.39|
This is a breakdown of current recommendations and price targets for Semtech and MaxLinear, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Semtech presently has a consensus price target of $41.90, suggesting a potential upside of 21.63%. MaxLinear has a consensus price target of $31.50, suggesting a potential upside of 35.14%. Given MaxLinear’s stronger consensus rating and higher possible upside, analysts plainly believe MaxLinear is more favorable than Semtech.
This table compares Semtech and MaxLinear’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
96.0% of Semtech shares are held by institutional investors. Comparatively, 87.5% of MaxLinear shares are held by institutional investors. 2.2% of Semtech shares are held by insiders. Comparatively, 11.9% of MaxLinear shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility and Risk
Semtech has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500. Comparatively, MaxLinear has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500.
Semtech beats MaxLinear on 9 of the 14 factors compared between the two stocks.
Semtech Company Profile
Semtech Corporation is a supplier of analog and mixed-signal semiconductor products. The Company designs, develops and markets a range of products for commercial applications, which are sold into the enterprise computing, communications, consumer and industrial end-markets. Its product lines include Signal Integrity, Protection, Wireless and Sensing, and Power and High-Reliability. Applications for the industrial market include video broadcast studio equipment, automated meter reading, wireless charging, military and aerospace, medical, security systems, automotive, Internet of Things, industrial and home automation, and video security and surveillance. Enterprise computing end-markets include desktops, notebooks, servers, graphic boards, printers, datacenter related equipment and passive optical networks. Communications end-market applications include wireless base stations, carrier networks, switches and routers, cable modems, signal conditioners and wireless local area network.
MaxLinear Company Profile
MaxLinear, Inc. is a provider of radio frequency (RF) and mixed-signal integrated circuits for cable and satellite broadband communications and the connected home, and wired and wireless infrastructure markets. The Company’s RF receiver products capture and process digital and analog broadband signals to be decoded for various applications. These products include both RF receivers and RF receiver systems-on-chip (SoCs), which incorporate its radio system architecture and the functionality necessary to receive and demodulate broadband signals, modem solutions, and physical medium devices that provide a constant current source, current-to-voltage regulation, and data alignment and retiming functionality in optical interconnect applications. It provides semiconductor solutions for the connected home, specifically Multimedia over Coax Alliance (MoCA) solutions. It sells its products to original equipment manufacturers (OEMs), module makers and original design manufacturers (ODMs).
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