ON Semiconductor (NASDAQ:ON) and Marvell Technology Group (NASDAQ:MRVL) are both large-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.
Profitability
This table compares ON Semiconductor and Marvell Technology Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
ON Semiconductor | 3.87% | 9.92% | 3.59% |
Marvell Technology Group | 51.19% | 3.76% | 2.91% |
Analyst Ratings
This is a summary of current ratings and recommmendations for ON Semiconductor and Marvell Technology Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
ON Semiconductor | 2 | 5 | 15 | 1 | 2.65 |
Marvell Technology Group | 0 | 4 | 22 | 0 | 2.85 |
ON Semiconductor currently has a consensus price target of $35.9130, indicating a potential downside of 14.86%. Marvell Technology Group has a consensus price target of $49.9583, indicating a potential upside of 4.28%. Given Marvell Technology Group's stronger consensus rating and higher possible upside, analysts plainly believe Marvell Technology Group is more favorable than ON Semiconductor.
Risk & Volatility
ON Semiconductor has a beta of 1.99, suggesting that its stock price is 99% more volatile than the S&P 500. Comparatively, Marvell Technology Group has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.
Valuation and Earnings
This table compares ON Semiconductor and Marvell Technology Group's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
ON Semiconductor | $5.52 billion | 3.20 | $211.70 million | $1.49 | 28.31 |
Marvell Technology Group | $2.70 billion | 11.99 | $1.58 billion | $0.32 | 149.72 |
Marvell Technology Group has lower revenue, but higher earnings than ON Semiconductor. ON Semiconductor is trading at a lower price-to-earnings ratio than Marvell Technology Group, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
98.9% of ON Semiconductor shares are held by institutional investors. Comparatively, 87.3% of Marvell Technology Group shares are held by institutional investors. 1.4% of ON Semiconductor shares are held by insiders. Comparatively, 0.3% of Marvell Technology Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
ON Semiconductor beats Marvell Technology Group on 9 of the 15 factors compared between the two stocks.