Contrasting MaxLinear (NASDAQ:MXL) & MKS (NASDAQ:MKSI)

MKS (NASDAQ:MKSI) and MaxLinear (NASDAQ:MXL) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.

Profitability

This table compares MKS and MaxLinear’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MKS	10.15%	24.72%	7.80%
MaxLinear	-18.24%	2.24%	1.30%

Insider and Institutional Ownership

99.8% of MKS shares are owned by institutional investors. Comparatively, 90.8% of MaxLinear shares are owned by institutional investors. 0.6% of MKS shares are owned by insiders. Comparatively, 7.7% of MaxLinear shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

MKS has a beta of 2.03, indicating that its stock price is 103% more volatile than the S&P 500. Comparatively, MaxLinear has a beta of 3.93, indicating that its stock price is 293% more volatile than the S&P 500.

Earnings & Valuation

This table compares MKS and MaxLinear”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MKS	$4.35 billion	3.36	$295.00 million	$6.27	34.47
MaxLinear	$467.64 million	14.70	-$136.68 million	($1.19)	-63.69

MKS has higher revenue and earnings than MaxLinear. MaxLinear is trading at a lower price-to-earnings ratio than MKS, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for MKS and MaxLinear, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MKS	1	2	12	1	2.81
MaxLinear	1	3	5	0	2.44

MKS currently has a consensus price target of $375.93, indicating a potential upside of 73.96%. MaxLinear has a consensus price target of $88.91, indicating a potential upside of 17.31%. Given MKS’s stronger consensus rating and higher probable upside, analysts plainly believe MKS is more favorable than MaxLinear.

Summary

MKS beats MaxLinear on 11 of the 15 factors compared between the two stocks.

About MKS

MKS Instruments, Inc. provides foundational technology solutions to semiconductor manufacturing, electronics and packaging, and specialty industrial applications in the United States, Germany, China, South Korea, and internationally. It operates through Vacuum Solutions Division (VSD), Photonics Solutions Division (PSD), and Material Solutions Division (MSD) segments. The VSD segment provides foundational technology solutions, including pressure measurement and control, flow measurement and control, gas and vapor delivery, gas composition analysis, electronic control technology, reactive gas generation and delivery, power generation and delivery, and vacuum technology. The PSD segment offers range of solutions, which include lasers, beam measurement and profiling, precision motion control, vibration isolation systems, photonics instruments, temperature sensing, opto-mechanical components, optical elements, systems for flexible PCB laser processing, and laser-based systems, as well as high density interconnect PCB and package manufacturing. The MSD segment develops, process, and manufactures technologies comprising advanced surface modification, electroless and electrolytic plating, and surface finishing for chemistry, equipment, software, and services markets, as well as high-technology applications. In addition, the company sells its products and services through direct sales, network of independent distributors, and sales representatives, as well as websites, including product catalogs. The company was incorporated in 1961 and is headquartered in Andover, Massachusetts.

About MaxLinear

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.