Marvell Technology Group (NASDAQ: MRVL) and Texas Instruments (NASDAQ:TXN) are both large-cap technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.
Volatility & Risk
Marvell Technology Group has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500. Comparatively, Texas Instruments has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Marvell Technology Group and Texas Instruments, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Marvell Technology Group||0||7||17||0||2.71|
Marvell Technology Group currently has a consensus target price of $24.36, indicating a potential upside of 6.41%. Texas Instruments has a consensus target price of $94.92, indicating a potential downside of 12.46%. Given Marvell Technology Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Marvell Technology Group is more favorable than Texas Instruments.
Marvell Technology Group pays an annual dividend of $0.24 per share and has a dividend yield of 1.0%. Texas Instruments pays an annual dividend of $2.48 per share and has a dividend yield of 2.3%. Marvell Technology Group pays out 42.1% of its earnings in the form of a dividend. Texas Instruments pays out 56.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Insider & Institutional Ownership
78.7% of Marvell Technology Group shares are owned by institutional investors. Comparatively, 83.8% of Texas Instruments shares are owned by institutional investors. 6.8% of Marvell Technology Group shares are owned by insiders. Comparatively, 1.0% of Texas Instruments shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Marvell Technology Group and Texas Instruments’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Marvell Technology Group||$2.32 billion||4.85||$21.15 million||$0.57||40.16|
|Texas Instruments||$13.37 billion||7.99||$3.60 billion||$4.39||24.70|
Texas Instruments has higher revenue and earnings than Marvell Technology Group. Texas Instruments 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.
This table compares Marvell Technology Group and Texas Instruments’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Marvell Technology Group||16.53%||11.93%||10.31%|
Texas Instruments beats Marvell Technology Group on 10 of the 16 factors compared between the two stocks.
Marvell Technology Group Company Profile
Marvell Technology Group Ltd. is a semiconductor provider of application-specific standard products. The Company is engaged in the design, development and sale of integrated circuits. The Company develops System-on-a-Chip (SoC) devices. It also develops integrated hardware platforms along with software that incorporates digital computing technologies designed and configured to provide an optimized computing solution. Its product portfolio includes devices for storage, networking and connectivity. In storage, it is engaged in data storage controller solutions spanning consumer, mobile, desktop and enterprise markets. Its storage solutions enable customers to engineer products for hard disk drives and solid state drives. Its networking products address end markets in cloud, enterprise, small and medium business and service provider networks. The Company’s connectivity products address end markets in consumer, enterprise, desktop, service provider networks and automotive.
Texas Instruments Company Profile
Texas Instruments Incorporated designs, makes and sells semiconductors to electronics designers and manufacturers across the world. The Company operates through two segments: Analog and Embedded Processing. As of December 31, 2016, the Company had design, manufacturing or sales operations in more than 30 countries. The Company’s Analog segment’s product line includes High Volume Analog & Logic (HVAL), Power Management (Power), High Performance Analog (HPA) and Silicon Valley Analog (SVA). HVAL products support applications, such as automotive safety devices, touchscreen controllers, low-voltage motor drivers and integrated motor controllers. The Company’s Embedded Processing segment’s product line includes Processor, Microcontrollers and Connectivity. Processor products include digital signal processors (DSPs) and applications processors. DSPs perform mathematical computations to process digital data.
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