Critical Contrast: Xperi (NASDAQ:XPER) vs. Marvell Technology Group (NASDAQ:MRVL)
Xperi (NASDAQ:XPER) and Marvell Technology Group (NASDAQ:MRVL) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.
Earnings & Valuation
This table compares Xperi and Marvell Technology Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Marvell Technology Group||$2.87 billion||6.04||-$179.09 million||$0.85||30.55|
Xperi pays an annual dividend of $0.80 per share and has a dividend yield of 3.9%. Marvell Technology Group pays an annual dividend of $0.24 per share and has a dividend yield of 0.9%. Xperi pays out 32.3% of its earnings in the form of a dividend. Marvell Technology Group pays out 28.2% 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. Marvell Technology Group has increased its dividend for 3 consecutive years.
This table compares Xperi 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||-14.42%||5.25%||3.82%|
Risk and Volatility
Xperi has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500. Comparatively, Marvell Technology Group has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.
Insider & Institutional Ownership
96.8% of Xperi shares are held by institutional investors. 1.8% of Xperi shares are held by insiders. Comparatively, 1.1% of Marvell Technology Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a summary of recent ratings and price targets for Xperi and Marvell Technology Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Marvell Technology Group||0||4||21||0||2.84|
Xperi currently has a consensus target price of $32.00, suggesting a potential upside of 55.95%. Marvell Technology Group has a consensus target price of $26.88, suggesting a potential upside of 3.50%. Given Xperi’s stronger consensus rating and higher probable upside, equities analysts clearly believe Xperi is more favorable than Marvell Technology Group.
Xperi beats Marvell Technology Group on 10 of the 17 factors compared between the two stocks.
Xperi Corporation, through its subsidiaries, creates, develops, and licenses audio, imaging, semiconductor packaging, and interconnect technologies in the United States, South Korea, Taiwan, Japan, Europe, the Middle East, and internationally. The company operates in two segments, Product Licensing; and Semiconductor and IP Licensing. The Product Licensing segment licenses technologies and intellectual property related to audio, digital radio, and imaging solutions under the DTS, FotoNation, HD Radio, and IMAX Enhanced brands. It delivers software and hardware based solutions combined with various other intellectual property to its customers or to their suppliers. This segment serves consumer electronics product manufacturers. The Semiconductor and IP Licensing segment develops and licenses semiconductor technologies and intellectual property to manufacturers, foundries, subcontract assemblers, and others. It develops and licenses 3D semiconductor packaging, interconnect, and bonding solutions for semiconductors that are used in smartphones, tablets, and laptops, as well as servers used in datacenters. This segment also provides engineering services. The company was formerly known as Tessera Holding Corporation and changed its name to Xperi Corporation in February 2017. Xperi Corporation was founded in 1990 and is headquartered in San Jose, California.
About Marvell Technology Group
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 preamplifiers; supports a variety of host system interfaces consisting of serial attached SCSI (SAS), serial advanced technology attachment (SATA), peripheral component interconnect express, and non-volatile memory express; and develops software-enabled silicon solutions comprising SATA port multipliers, bridges, SATA, SAS, 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 comprise Ethernet solutions consisting of Ethernet switches, Ethernet physical-layer transceivers, embedded communication processors, and Ethernet adapters and controllers. In addition, it offers a portfolio of connectivity solutions, including Wi-Fi and Wi-Fi/Bluetooth integrated system-on-a-chip (SoC) products, which are integrated into various end devices, such as enterprise access points, home gateways and voice assistants, multimedia devices, gaming products, printers, automotive infotainment and telematics units, and smart industrial devices. Further, the company provides printer SoC products 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.
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