Critical Survey: Marvell Technology (NASDAQ:MRVL) versus Navitas Semiconductor (NASDAQ:NVTS)

Marvell Technology (NASDAQ:MRVL) and Navitas Semiconductor (NASDAQ:NVTS) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Institutional and Insider Ownership

83.5% of Marvell Technology shares are held by institutional investors. Comparatively, 46.1% of Navitas Semiconductor shares are held by institutional investors. 0.3% of Marvell Technology shares are held by insiders. Comparatively, 29.9% of Navitas Semiconductor shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Marvell Technology and Navitas Semiconductor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marvell Technology	0	14	20	4	2.74
Navitas Semiconductor	2	5	2	0	2.00

Marvell Technology currently has a consensus price target of $111.25, indicating a potential upside of 28.85%. Navitas Semiconductor has a consensus price target of $6.48, indicating a potential downside of 12.39%. Given Marvell Technology’s stronger consensus rating and higher probable upside, research analysts clearly believe Marvell Technology is more favorable than Navitas Semiconductor.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Marvell Technology	31.75%	13.15%	8.65%
Navitas Semiconductor	-220.85%	-14.86%	-13.13%

Valuation & Earnings

This table compares Marvell Technology and Navitas Semiconductor”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marvell Technology	$5.77 billion	12.70	-$885.00 million	$2.85	30.29
Navitas Semiconductor	$83.30 million	20.48	-$84.60 million	($0.64)	-11.56

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

Volatility and Risk

Marvell Technology has a beta of 1.93, suggesting that its share price is 93% more volatile than the S&P 500. Comparatively, Navitas Semiconductor has a beta of 3.14, suggesting that its share price is 214% more volatile than the S&P 500.

Summary

Marvell Technology beats Navitas Semiconductor on 11 of the 15 factors compared between the two stocks.

About Marvell Technology

Marvell Technology, Inc., together with its subsidiaries, provides data infrastructure semiconductor solutions, spanning the data center core to network edge. The company develops and scales complex System-on-a-Chip architectures, integrating analog, mixed-signal, and digital signal processing functionality. It offers a portfolio of Ethernet solutions, including controllers, network adapters, physical transceivers, and switches; single or multiple core processors; and custom application specific integrated circuits. The company also provides electro-optical products, including pulse amplitude modulations, coherent digital signal processors, laser drivers, trans-impedance amplifiers, silicon photonics, and data center interconnect solutions; fibre channel products comprising host bus adapters and controllers; storage controllers for hard disk drives and solid-state-drives; and host system interfaces, including serial attached SCSI, serial advanced technology attachment, peripheral component interconnect express, non-volatile memory express (NVMe), and NVMe over fabrics. It has operations in the United States, Argentina, China, India, Israel, Japan, Singapore, South Korea, Taiwan, and Vietnam. Marvell Technology, Inc. was incorporated in 1995 and is headquartered in Wilmington, Delaware.

About Navitas Semiconductor

Navitas Semiconductor Corporation designs, develops, and markets gallium nitride power integrated circuits, silicon carbide, associated high-speed silicon system controllers, and digital isolators used in power conversion and charging. The company’s products are used in mobile, consumer, data center, solar, electric vehicle, industrial motor drive, smart grid, and transportation applications. It operates in the United States, Europe, China, rest of Asia, and internationally. The company was founded in 2013 and is based in Torrance, California.