Financial Survey: NVIDIA Corporation (NVDA) vs. Marvell Technology Group (MRVL)
Marvell Technology Group (NASDAQ: MRVL) and NVIDIA Corporation (NASDAQ:NVDA) are both mid-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.
Marvell Technology Group pays an annual dividend of $0.24 per share and has a dividend yield of 1.3%. NVIDIA Corporation pays an annual dividend of $0.56 per share and has a dividend yield of 0.3%. Marvell Technology Group pays out 47.1% of its earnings in the form of a dividend. NVIDIA Corporation pays out 15.9% 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.
Institutional & Insider Ownership
76.7% of Marvell Technology Group shares are held by institutional investors. Comparatively, 65.9% of NVIDIA Corporation shares are held by institutional investors. 6.8% of Marvell Technology Group shares are held by insiders. Comparatively, 5.8% of NVIDIA Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares Marvell Technology Group and NVIDIA Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Marvell Technology Group||10.97%||9.99%||8.66%|
Earnings & Valuation
This table compares Marvell Technology Group and NVIDIA Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Marvell Technology Group||$2.38 billion||3.81||$502.80 million||$0.51||35.85|
|NVIDIA Corporation||$8.34 billion||12.19||$2.82 billion||$3.53||47.98|
NVIDIA Corporation has higher revenue and earnings than Marvell Technology Group. Marvell Technology Group is trading at a lower price-to-earnings ratio than NVIDIA Corporation, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and price targets for Marvell Technology Group and NVIDIA Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Marvell Technology Group||1||8||14||0||2.57|
Marvell Technology Group currently has a consensus target price of $18.85, indicating a potential upside of 3.10%. NVIDIA Corporation has a consensus target price of $142.81, indicating a potential downside of 15.69%. Given Marvell Technology Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Marvell Technology Group is more favorable than NVIDIA Corporation.
Volatility and Risk
Marvell Technology Group has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, NVIDIA Corporation has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.
NVIDIA Corporation beats Marvell Technology Group on 11 of the 16 factors compared between the two stocks.
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.
About NVIDIA Corporation
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.
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