Head-To-Head Review: Marvell Technology Group (MRVL) vs. Cavium (CAVM)
Marvell Technology Group (NASDAQ: MRVL) and Cavium (NASDAQ:CAVM) are both mid-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.
Marvell Technology Group pays an annual dividend of $0.24 per share and has a dividend yield of 1.1%. Cavium does not pay a dividend. Marvell Technology Group pays out 31.2% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares Marvell Technology Group and Cavium’s top-line 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||4.66||$21.15 million||$0.77||28.53|
|Cavium||$603.31 million||9.73||-$147.20 million||($2.81)||-30.20|
Marvell Technology Group has higher revenue and earnings than Cavium. Cavium 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 Cavium’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Marvell Technology Group||16.53%||11.99%||10.34%|
Risk and Volatility
Marvell Technology Group has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Cavium has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500.
Insider and Institutional Ownership
78.8% of Marvell Technology Group shares are owned by institutional investors. 6.8% of Marvell Technology Group shares are owned by insiders. Comparatively, 4.7% of Cavium shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a summary of recent ratings and price targets for Marvell Technology Group and Cavium, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Marvell Technology Group||0||7||18||0||2.72|
Marvell Technology Group currently has a consensus target price of $23.86, indicating a potential upside of 8.59%. Cavium has a consensus target price of $78.56, indicating a potential downside of 7.43%. Given Marvell Technology Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe Marvell Technology Group is more favorable than Cavium.
Marvell Technology Group beats Cavium on 12 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.
Cavium Company Profile
Cavium, Inc. is a provider of integrated semiconductor processors that enable intelligent processing for wired and wireless infrastructure and cloud for networking, communications, storage and security applications. The Company’s products consist of multi-core processors for embedded and data center applications, network connectivity for server and switches, storage connectivity, and security processors for offload and appliance. A range of its products also include a suite of embedded security protocols that enable unified threat management (UTM), secure connectivity, network perimeter protection and deep packet inspection (DPI). The Company sells its products to networking original equipment manufacturers (OEM), which sell into the enterprise, datacenter, service provider, and broadband and consumer markets. In the enterprise market, its products are used in routers, switches, storage appliances, server connectivity for networking and storage, wireless local area networks and UTM.
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