Fairchild Semiconductor Intl (NASDAQ: FCS) and Marvell Technology Group (NASDAQ:MRVL) are both technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitabiliy, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.

Institutional & Insider Ownership

89.7% of Fairchild Semiconductor Intl shares are held by institutional investors. Comparatively, 74.6% of Marvell Technology Group shares are held by institutional investors. 0.7% of Fairchild Semiconductor Intl shares are held by company insiders. Comparatively, 6.8% of Marvell Technology Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Marvell Technology Group pays an annual dividend of $0.24 per share and has a dividend yield of 1.5%. Fairchild Semiconductor Intl does not pay a dividend. Marvell Technology Group pays out 82.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares Fairchild Semiconductor Intl and Marvell Technology Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Fairchild Semiconductor Intl N/A N/A N/A $0.06 331.06
Marvell Technology Group $2.38 billion 3.27 $437.69 million $0.29 53.45

Marvell Technology Group has higher revenue and earnings than Fairchild Semiconductor Intl. Marvell Technology Group is trading at a lower price-to-earnings ratio than Fairchild Semiconductor Intl, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Fairchild Semiconductor Intl has a beta of 1.72, indicating that its stock price is 72% more volatile than the S&P 500. Comparatively, Marvell Technology Group has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Fairchild Semiconductor Intl and Marvell Technology Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fairchild Semiconductor Intl 0 0 0 0 N/A
Marvell Technology Group 1 7 13 0 2.57

Marvell Technology Group has a consensus price target of $18.29, suggesting a potential upside of 17.98%. Given Marvell Technology Group’s higher probable upside, analysts plainly believe Marvell Technology Group is more favorable than Fairchild Semiconductor Intl.

Profitability

This table compares Fairchild Semiconductor Intl and Marvell Technology Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fairchild Semiconductor Intl 1.97% 2.46% 1.77%
Marvell Technology Group 6.19% 7.96% 6.93%

Summary

Marvell Technology Group beats Fairchild Semiconductor Intl on 9 of the 12 factors compared between the two stocks.

About Fairchild Semiconductor Intl

Fairchild Semiconductor International, Inc. is focused on developing, manufacturing and selling power management solutions. The Company is engaged in power analog and discrete design, as well as packaging. It also makes non-power semiconductor and micro-electro-mechanical systems (MEMS)-based solutions. The Company’s products are used in various end market applications, including industrial, home appliance, automotive, mobile, server and cloud computing, lighting and consumer electronics. It develops a range of power and signal path products for industrial, appliance, cloud computing and automotive applications. The Company’s segments include Switching Power Solutions segment (SPS), the Analog Power and Signal Solutions segment (APSS), and Standard Products Group (SPG). It also invests in wafer fabrication and packaging technology to support the development of these products. The Company also has an eight-inch wafer fabrication site in Bucheon, Korea.

About Marvell Technology Group

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.

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