Mindspeed Technologies (NASDAQ: MSPD) and Marvell Technology Group (NASDAQ:MRVL) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Mindspeed Technologies and Marvell Technology Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mindspeed Technologies 0 0 0 0 N/A
Marvell Technology Group 0 7 17 0 2.71

Marvell Technology Group has a consensus price target of $24.36, suggesting a potential upside of 5.12%.

Profitability

This table compares Mindspeed Technologies and Marvell Technology Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mindspeed Technologies N/A N/A N/A
Marvell Technology Group 16.53% 11.93% 10.31%

Insider and Institutional Ownership

78.7% of Marvell Technology Group shares are held by institutional investors. 6.8% of Marvell Technology Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Mindspeed Technologies and Marvell Technology Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mindspeed Technologies N/A N/A N/A ($2.20) N/A
Marvell Technology Group $2.32 billion 4.91 $21.15 million $0.57 40.65

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

Dividends

Marvell Technology Group pays an annual dividend of $0.24 per share and has a dividend yield of 1.0%. Mindspeed Technologies does not pay a dividend. Marvell Technology Group pays out 42.1% of its earnings in the form of a dividend.

Summary

Marvell Technology Group beats Mindspeed Technologies on 9 of the 10 factors compared between the two stocks.

About Mindspeed Technologies

Mindspeed Technologies, Inc. (Mindspeed) designs, develops and sells semiconductor solutions for communications applications in the wireline and wireless network infrastructure, which includes enterprise networks, broadband access networks (fixed and mobile), and metropolitan and wide area networks (WAN). Mindspeed has organized its solutions for these networks into three product families: communications convergence processing (formerly known as multiservice access), high-performance analog and WAN communications. Its products are sold to original equipment manufacturers (OEMs) for use in a variety of network infrastructure equipment. The Company’s customers include Alcatel-Lucent, Cisco Systems, Inc., Huawei Technologies Co. Ltd. and Zhongxing Telecom Equipment Corp. Effective December 18, 2013, M/A-Com Technology Solutions Holdings Inc acquired the entire interest of Mindspeed Technologies Inc.

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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