MaxLinear (NYSE:MXL) and GSI Technology (NASDAQ:GSIT) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, profitability, valuation and analyst recommendations.
Earnings and Valuation
This table compares MaxLinear and GSI Technology’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|MaxLinear||$420.32 million||3.12||-$9.18 million||$1.18||16.10|
|GSI Technology||$42.64 million||3.46||-$4.51 million||N/A||N/A|
Institutional & Insider Ownership
94.9% of MaxLinear shares are owned by institutional investors. Comparatively, 28.1% of GSI Technology shares are owned by institutional investors. 11.5% of MaxLinear shares are owned by insiders. Comparatively, 36.3% of GSI Technology shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares MaxLinear and GSI Technology’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and recommmendations for MaxLinear and GSI Technology, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
MaxLinear currently has a consensus price target of $21.83, indicating a potential upside of 14.91%. Given MaxLinear’s stronger consensus rating and higher probable upside, research analysts clearly believe MaxLinear is more favorable than GSI Technology.
Volatility & Risk
MaxLinear has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, GSI Technology has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.
MaxLinear beats GSI Technology on 8 of the 12 factors compared between the two stocks.
MaxLinear, Inc. provides radio-frequency (RF), high-performance analog, and mixed-signal communications systems-on-chip solutions (SoCs) for the connected home, wired and wireless infrastructure, and industrial and multi-market applications worldwide. The company offers range of semiconductor products, such as RF receivers and RF receiver SoCs, wireless infrastructure backhaul RF receivers and modem SoCs, laser modulator drivers, transimpedance amplifiers, clock and data recovery circuits, interface solutions, power management products, and data encryption and compression products. It also provides range of electronic devices, including cable DOCSIS broadband modems and gateways; wireline connectivity devices for in-home networking applications; RF transceivers and modems; fiber-optic modules; video set-top boxes and gateways; hybrid analog and digital televisions, and direct broadcast satellite outdoor and indoor units; and power management and interface products. It sells its products to electronics distributors, module makers, original equipment manufacturers, and original design manufacturers through direct sales force, third party sales representatives, and a network of distributors. MaxLinear, Inc. was incorporated in 2003 and is headquartered in Carlsbad, California.
About GSI Technology
GSI Technology, Inc., a fabless semiconductor company, designs, develops, and markets memory products primarily for the networking and telecommunications markets in the United States, China, Singapore, the Netherlands, and internationally. It offers synchronous static random access memory (SRAM) products, such as BurstRAMs for microprocessor cache applications; No Bus Turnaround SRAMs to address the needs of moderate performance networking applications; SigmaQuad and SigmaDDR products that are double data rate and quad data rate synchronous SRAMs; and radiation-hardened SRAMs for aerospace and military applications, such as networking satellites and missiles. The company also provides low latency dynamic random access memory products. Its products are incorporated in a range of networking and telecommunications equipment, including core routers, multi-service access routers, universal gateways, enterprise edge routers, service provider edge routers, optical edge routers, fast Ethernet switches, wireless base stations, and network access equipment. The company markets its products through a network of independent sales representatives and distributors to original equipment manufacturers, as well as to military, industrial, test and measurement equipment, automotive, and medical markets. GSI Technology, Inc. was founded in 1995 and is headquartered in Sunnyvale, California.
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