Analyzing NVIDIA Corporation (NVDA) & MaxLinear (MXL)
NVIDIA Corporation (NASDAQ: NVDA) and MaxLinear (NYSE:MXL) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.
This is a breakdown of current recommendations for NVIDIA Corporation and MaxLinear, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
NVIDIA Corporation presently has a consensus price target of $143.27, suggesting a potential downside of 8.14%. MaxLinear has a consensus price target of $30.42, suggesting a potential upside of 40.17%. Given MaxLinear’s stronger consensus rating and higher probable upside, analysts plainly believe MaxLinear is more favorable than NVIDIA Corporation.
NVIDIA Corporation pays an annual dividend of $0.56 per share and has a dividend yield of 0.4%. MaxLinear does not pay a dividend. NVIDIA Corporation pays out 15.9% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares NVIDIA Corporation and MaxLinear’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|NVIDIA Corporation||$8.34 billion||11.13||$2.82 billion||$3.53||44.18|
|MaxLinear||$376.48 million||3.84||$86.87 million||$0.54||40.19|
NVIDIA Corporation has higher revenue and earnings than MaxLinear. MaxLinear is trading at a lower price-to-earnings ratio than NVIDIA Corporation, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
NVIDIA Corporation has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, MaxLinear has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.
This table compares NVIDIA Corporation and MaxLinear’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
68.6% of NVIDIA Corporation shares are held by institutional investors. Comparatively, 86.3% of MaxLinear shares are held by institutional investors. 5.2% of NVIDIA Corporation shares are held by company insiders. Comparatively, 11.9% of MaxLinear shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
NVIDIA Corporation beats MaxLinear on 12 of the 17 factors compared between the two stocks.
NVIDIA Corporation Company Profile
Nvidia Corporation focuses on personal computer (PC) graphics, graphics processing unit (GPU) and also on artificial intelligence (AI). The Company’s operates through two segments: GPU and Tegra Processor. The Company’s GPU product brands are aimed at specialized markets, including GeForce for gamers; Quadro for designers; Tesla and DGX for AI data scientists and big data researchers; and GRID for cloud-based visual computing users. The Company’s Tegra brand integrates an entire computer onto a single chip, and incorporates GPUs and multi-core central processing units (CPUs) to drive supercomputing for mobile gaming and entertainment devices, as well as autonomous robots, drones and cars. The Company’s processor has created platforms that address four markets: Gaming, Professional Visualization, Datacenter, and Automotive. The Company’s offerings include NVIDIA DGX AI supercomputer, the NVIDIA DRIVE AI car computing platform and the GeForce NOW cloud gaming service.
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).
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