MaxLinear (NYSE: MXL) and PMC-Sierra (NASDAQ:PMCS) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitabiliy, analyst recommendations, valuation, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for MaxLinear and PMC-Sierra, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MaxLinear 0 0 6 0 3.00
PMC-Sierra 0 0 0 0 N/A

MaxLinear presently has a consensus target price of $29.40, indicating a potential upside of 4.37%. Given MaxLinear’s higher possible upside, equities research analysts plainly believe MaxLinear is more favorable than PMC-Sierra.

Profitability

This table compares MaxLinear and PMC-Sierra’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MaxLinear 13.12% 26.77% 22.10%
PMC-Sierra 5.03% 4.71% 3.27%

Valuation and Earnings

This table compares MaxLinear and PMC-Sierra’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
MaxLinear $373.99 million 4.93 $90.12 million $0.71 39.68
PMC-Sierra N/A N/A N/A N/A N/A

MaxLinear has higher revenue and earnings than PMC-Sierra.

Insider & Institutional Ownership

84.4% of MaxLinear shares are held by institutional investors. 11.9% of MaxLinear shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

MaxLinear beats PMC-Sierra on 8 of the 8 factors compared between the two stocks.

MaxLinear Company Profile

MaxLinear, Inc. is a provider of radio frequency (RF) and mixed-signal integrated circuits for cable and satellite broadband communications and the connected home, and wired and wireless infrastructure markets. The Company’s RF receiver products capture and process digital and analog broadband signals to be decoded for various applications. These products include both RF receivers and RF receiver systems-on-chip (SoCs), which incorporate its radio system architecture and the functionality necessary to receive and demodulate broadband signals, modem solutions, and physical medium devices that provide a constant current source, current-to-voltage regulation, and data alignment and retiming functionality in optical interconnect applications. It provides semiconductor solutions for the connected home, specifically Multimedia over Coax Alliance (MoCA) solutions. It sells its products to original equipment manufacturers (OEMs), module makers and original design manufacturers (ODMs).

PMC-Sierra Company Profile

PMC-Sierra, Inc. (PMC) is a semiconductor and software solution innovator transforming networks that connect, move, and store Big Data. The Company designs, develops, markets and supports semiconductor, embedded software, and board level solutions. The Company has approximately 700 different semiconductor devices that are sold to equipment and design manufacturers, who in turn supply their equipment principally to enterprises, Cloud Data Centers and carriers worldwide. The Company provides solutions for its customers across a range of applications and industry protocols. PMC’s portfolio of semiconductor devices is used in various applications of storage and communications network infrastructure equipment and enable the transporting and storing of digital data in a secure manner. The Company’s semiconductor devices enable networking equipment primarily in three market segments: Storage, Optical and Mobile networks.

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