Infineon Technologies (OTCMKTS:IFNNY) vs. Marvell Technology (NASDAQ:MRVL) Critical Analysis

Infineon Technologies (OTCMKTS:IFNNY) and Marvell Technology (NASDAQ:MRVL) are both large-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, earnings, dividends and analyst recommendations.

Insider and Institutional Ownership

0.2% of Infineon Technologies shares are held by institutional investors. Comparatively, 83.5% of Marvell Technology shares are held by institutional investors. 0.1% of Marvell Technology shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Infineon Technologies and Marvell Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Infineon Technologies	0	2	1	1	2.75
Marvell Technology	0	6	28	2	2.89

Marvell Technology has a consensus target price of $218.58, indicating a potential downside of 17.04%. Given Marvell Technology’s stronger consensus rating and higher possible upside, analysts plainly believe Marvell Technology is more favorable than Infineon Technologies.

Dividends

Infineon Technologies pays an annual dividend of $0.28 per share and has a dividend yield of 0.3%. Marvell Technology pays an annual dividend of $0.24 per share and has a dividend yield of 0.1%. Infineon Technologies pays out 27.5% of its earnings in the form of a dividend. Marvell Technology pays out 8.2% 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.

Profitability

This table compares Infineon Technologies and Marvell Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Infineon Technologies	7.84%	11.07%	6.28%
Marvell Technology	28.99%	13.83%	9.08%

Risk and Volatility

Infineon Technologies has a beta of 2.22, indicating that its share price is 122% more volatile than the S&P 500. Comparatively, Marvell Technology has a beta of 2.29, indicating that its share price is 129% more volatile than the S&P 500.

Earnings & Valuation

This table compares Infineon Technologies and Marvell Technology”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Infineon Technologies	$16.21 billion	6.83	$1.12 billion	$1.02	83.35
Marvell Technology	$8.19 billion	28.13	$2.67 billion	$2.92	90.23

Marvell Technology has lower revenue, but higher earnings than Infineon Technologies. Infineon Technologies is trading at a lower price-to-earnings ratio than Marvell Technology, indicating that it is currently the more affordable of the two stocks.

Summary

Marvell Technology beats Infineon Technologies on 15 of the 17 factors compared between the two stocks.

About Infineon Technologies

Infineon Technologies AG designs, develops, manufactures, and markets semiconductors and semiconductor-based solutions worldwide. Its Automotive segment offers automotive microcontrollers; 3D ToF, magnetic, and pressure sensors; discrete power semiconductors; IGBT modules; industrial microcontrollers; power and memory ICs; transceivers; diodes, MOSEFTs, and modules; and voltage regulators for use in assistance and safety systems, comfort electronics, infotainment, powertrain, and security products. The company’s Green Industrial Power segment provides bare dies, discrete IGBTs, and driver ICs; SiC diodes, MOSFETs, and modules; and IGBT modules for home appliances, industrial drives, industrial power supplies, industrial robotics, industrial vehicles, and traction, as well as for energy generation, storage, and transmission. Its Power & Sensor Systems segment offers chips for gas and pressure sensors, and MEMS microphones; 3D ToF sensors; control ICs; discrete low-, mid-, and high-voltage power MOSFET; customized chips; GaN power switches; GPS low-noise amplifiers; low-voltage and high-voltage driver ICs; radar sensor ICs; RF antenna switches and power transistors; transient voltage suppressor diodes; SiC diode and MOSFETs; and USB controllers for use in audio amplifiers, automotive electronics, BLDC motors, cellular communications infrastructure, electric vehicle charging stations, human machine interaction, IoT, LED and conventional lighting systems, microinverter, mobile devices, power management, and special applications. The company’s Connected Secure Systems segment provides connectivity solutions, embedded security controllers, microcontrollers, and security controllers for authentication, automotive, consumer electronics, government identification document, IoT, mobile communication, payment system, ticketing, access control, and computing applications. Infineon Technologies AG was founded in 1999 and is headquartered in Neubiberg, Germany.

About Marvell Technology

Marvell Technology, Inc., together with its subsidiaries, provides data infrastructure semiconductor solutions, spanning the data center core to network edge. The company develops and scales complex System-on-a-Chip architectures, integrating analog, mixed-signal, and digital signal processing functionality. It offers a portfolio of Ethernet solutions, including controllers, network adapters, physical transceivers, and switches; single or multiple core processors; and custom application specific integrated circuits. The company also provides electro-optical products, including pulse amplitude modulations, coherent digital signal processors, laser drivers, trans-impedance amplifiers, silicon photonics, and data center interconnect solutions; fibre channel products comprising host bus adapters and controllers; storage controllers for hard disk drives and solid-state-drives; and host system interfaces, including serial attached SCSI, serial advanced technology attachment, peripheral component interconnect express, non-volatile memory express (NVMe), and NVMe over fabrics. It has operations in the United States, Argentina, China, India, Israel, Japan, Singapore, South Korea, Taiwan, and Vietnam. Marvell Technology, Inc. was incorporated in 1995 and is headquartered in Wilmington, Delaware.