Microsemi (NASDAQ: MSCC) and Marvell Technology Group (NASDAQ:MRVL) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, valuation, dividends, institutional ownership and earnings.
Volatility & Risk
Get Microsemi alerts:
Microsemi has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, Marvell Technology Group has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.
Insider and Institutional Ownership
90.7% of Microsemi shares are held by institutional investors. 0.6% of Microsemi shares are held by company insiders. Comparatively, 0.1% of Marvell Technology Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Marvell Technology Group pays an annual dividend of $0.24 per share and has a dividend yield of 1.1%. Microsemi does not pay a dividend. Marvell Technology Group pays out 23.1% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Microsemi and Marvell Technology Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Microsemi||$1.81 billion||4.48||$176.30 million||$3.26||21.09|
|Marvell Technology Group||$2.41 billion||4.43||$520.83 million||$1.04||20.49|
Marvell Technology Group has higher revenue and earnings than Microsemi. Marvell Technology Group is trading at a lower price-to-earnings ratio than Microsemi, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for Microsemi and Marvell Technology Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Marvell Technology Group||0||4||19||0||2.83|
Microsemi currently has a consensus target price of $65.16, indicating a potential downside of 5.21%. Marvell Technology Group has a consensus target price of $26.28, indicating a potential upside of 23.30%. Given Marvell Technology Group’s stronger consensus rating and higher possible upside, analysts clearly believe Marvell Technology Group is more favorable than Microsemi.
This table compares Microsemi and Marvell Technology Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Marvell Technology Group||22.24%||13.84%||12.09%|
Microsemi Company Profile
Microsemi Corporation designs, manufactures, and markets analog and mixed-signal semiconductor solutions in the United States, Europe, and Asia. The company offers analog mixed-signal integrated circuits; field programmable gate arrays; system on chip solutions and application-specific integrated circuits; power management products; and timing and synchronization devices, and precise time solutions. It also provides voice processing devices, radio frequency solutions, discrete components, enterprise storage and communication solutions, security technologies and scalable anti-tamper products, Ethernet solutions, and power-over-Ethernet integrated circuits and midspans, as well as custom design capabilities and services. The company's products are used in various applications, such as communications infrastructure systems comprising wireless and wired LAN systems; implantable pacemakers and defibrillators; radar systems; missile systems; military and commercial satellites and aircraft; and enterprise storage and hyperscale data centers. It serves aerospace and defense, communications, data center, and industrial markets. The company was formerly known as Microsemiconductor Corp and changed its name to Microsemi Corporation in March 1983. Microsemi Corporation was founded in 1960 and is headquartered in Aliso Viejo, California.
Marvell Technology Group Company Profile
Marvell Technology Group Ltd. designs, develops, and markets analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits. It offers a range of storage products, including hard disk drive (HDD) and solid-state drive controllers, as well as HDD components, such as HDD preamps components; and develops software-enabled silicon solutions comprising serial advanced technology attachment port multipliers, bridges, serial attached SCSI, and non-volatile memory express redundant array of independent disks controllers and converged storage processors for enterprises, data centers, and cloud computing businesses. The company also provides networking products, which includes Ethernet solutions consisting of Ethernet switches, Ethernet physical-layer transceivers, and single-chip network interface devices; and embedded communication processors. In addition, it offers a portfolio of connectivity solutions, including Wi-Fi and Wi-Fi/Bluetooth integrated system-on-a-chip products, which are integrated into various end devices, including enterprise access points, home gateways, multimedia devices, gaming products, printers, automotive infotainment and telematics units, and smart industrial devices. Further, the company provides printer-specific standard products, as well as full-custom and application-specific integrated circuits; and application processors. It has operations in the United States, China, Malaysia, the Philippines, Thailand, Singapore, India, Israel, Japan, South Korea, Taiwan, and Vietnam. Marvell Technology Group Ltd. was founded in 1995 and is headquartered in Hamilton, Bermuda.