MaxLinear (MXL) versus Its Rivals Critical Contrast

MaxLinear (NASDAQ:MXL) is one of 221 publicly-traded companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it contrast to its competitors? We will compare MaxLinear to similar businesses based on the strength of its valuation, profitability, institutional ownership, earnings, risk, analyst recommendations and dividends.

Profitability

This table compares MaxLinear and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MaxLinear	-4.45%	12.89%	7.50%
MaxLinear Competitors	-1,280.34%	-126.29%	-3.97%

Institutional and Insider Ownership

90.8% of MaxLinear shares are held by institutional investors. Comparatively, 54.8% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by institutional investors. 7.7% of MaxLinear shares are held by insiders. Comparatively, 11.5% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares MaxLinear and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
MaxLinear	$467.64 million	-$136.68 million	-154.81
MaxLinear Competitors	$7.33 billion	$2.49 billion	7.82

MaxLinear’s competitors have higher revenue and earnings than MaxLinear. MaxLinear is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

MaxLinear has a beta of 3.97, meaning that its share price is 297% more volatile than the S&P 500. Comparatively, MaxLinear’s competitors have a beta of 2.80, meaning that their average share price is 180% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for MaxLinear and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MaxLinear	1	3	5	1	2.60
MaxLinear Competitors	3489	12308	25710	993	2.57

MaxLinear presently has a consensus target price of $94.30, suggesting a potential upside of 64.63%. As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 45.37%. Given MaxLinear’s stronger consensus rating and higher possible upside, equities analysts plainly believe MaxLinear is more favorable than its competitors.

Summary

MaxLinear beats its competitors on 8 of the 13 factors compared.

MaxLinear Company Profile

MaxLinear, Inc. provides communications systems-on-chip solutions worldwide. Its products integrate various portions of a high-speed communication system, including radio frequency, high-performance analog, mixed-signal, digital signal processing, security engines, data compression and networking layers, and power management. The company's products are used in various electronic devices, such as radio transceivers and modems for 4G/5G base-station and backhaul infrastructure; optical transceivers targeting hyperscale data centers; Wi-Fi and wireline routers for home networking; broadband modems compliant with data over cable service interface specifications, passive optical fiber standards, and digital subscriber line, as well as power management and interface products. It serves electronics distributors, module makers, original equipment manufacturers, and original design manufacturers through a direct sales force, third-party sales representatives, and a network of distributors. The company was incorporated in 2003 and is headquartered in Carlsbad, California.