MaxLinear (NYSE:MXL) and Micron Technology (NASDAQ:MU) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.
Volatility and Risk
MaxLinear has a beta of 1.94, indicating that its share price is 94% more volatile than the S&P 500. Comparatively, Micron Technology has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for MaxLinear and Micron Technology, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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MaxLinear | 0 | 3 | 6 | 0 | 2.67 |
Micron Technology | 1 | 6 | 27 | 1 | 2.80 |
MaxLinear presently has a consensus target price of $37.6667, suggesting a potential downside of 8.35%. Micron Technology has a consensus target price of $90.2727, suggesting a potential downside of 4.74%. Given Micron Technology's stronger consensus rating and higher probable upside, analysts clearly believe Micron Technology is more favorable than MaxLinear.
Institutional & Insider Ownership
82.1% of MaxLinear shares are held by institutional investors. Comparatively, 80.4% of Micron Technology shares are held by institutional investors. 10.0% of MaxLinear shares are held by insiders. Comparatively, 0.2% of Micron Technology shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares MaxLinear and Micron Technology's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
MaxLinear | -23.18% | 3.25% | 1.70% |
Micron Technology | 13.59% | 8.46% | 6.22% |
Earnings & Valuation
This table compares MaxLinear and Micron Technology's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
MaxLinear | $317.18 million | 9.66 | $-19,900,000.00 | $0.42 | 97.86 |
Micron Technology | $21.44 billion | 4.95 | $2.69 billion | $2.55 | 37.16 |
Micron Technology has higher revenue and earnings than MaxLinear. Micron Technology is trading at a lower price-to-earnings ratio than MaxLinear, indicating that it is currently the more affordable of the two stocks.
Summary
Micron Technology beats MaxLinear on 11 of the 15 factors compared between the two stocks.