Marvell Technology (NASDAQ:MRVL – Get Rating) and Silicon Laboratories (NASDAQ:SLAB – Get Rating) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.
Volatility & Risk
Marvell Technology has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, Silicon Laboratories has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.
This is a summary of recent ratings and price targets for Marvell Technology and Silicon Laboratories, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Marvell Technology | 0 | 3 | 26 | 0 | 2.90 |
Silicon Laboratories | 0 | 3 | 5 | 0 | 2.63 |
Marvell Technology currently has a consensus price target of $95.73, indicating a potential upside of 71.96%. Silicon Laboratories has a consensus price target of $197.00, indicating a potential upside of 40.74%. Given Marvell Technology’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Marvell Technology is more favorable than Silicon Laboratories.
Insider & Institutional Ownership
83.1% of Marvell Technology shares are owned by institutional investors. Comparatively, 99.4% of Silicon Laboratories shares are owned by institutional investors. 0.3% of Marvell Technology shares are owned by insiders. Comparatively, 1.6% of Silicon Laboratories shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Marvell Technology and Silicon Laboratories’ gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Marvell Technology | $4.46 billion | 10.58 | -$421.03 million | ($0.54) | -103.09 |
Silicon Laboratories | $720.86 million | 7.10 | $2.12 billion | $47.70 | 2.93 |
Silicon Laboratories has lower revenue, but higher earnings than Marvell Technology. Marvell Technology is trading at a lower price-to-earnings ratio than Silicon Laboratories, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Marvell Technology and Silicon Laboratories’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Marvell Technology | -9.44% | 5.60% | 3.96% |
Silicon Laboratories | 266.91% | 4.08% | 2.91% |
Summary
Marvell Technology beats Silicon Laboratories on 8 of the 14 factors compared between the two stocks.
Marvell Technology Company Profile (Get Rating)
Marvell Technology, Inc., together with its subsidiaries, designs, develops, and sells analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits. It offers a portfolio of Ethernet solutions, including controllers, network adapters, physical transceivers, and switches; single or multiple core processors; ASIC; and printer System-on-a-Chip products and application processors. The company also provides a range of storage products comprising storage controllers for hard disk drives (HDD) and solid-state drives that support various host system interfaces consisting of serial attached SCSI (SAS), serial advanced technology attachment (SATA), peripheral component interconnect express, non-volatile memory express (NVMe), and NVMe over fabrics; and fiber channel products, including host bus adapters, and controllers for server and storage system connectivity. It has operations in the United States, China, Malaysia, the Philippines, Thailand, Singapore, India, Israel, Japan, South Korea, Taiwan, and Vietnam. Marvell Technology, Inc. was incorporated in 1995 and is headquartered in Wilmington, Delaware.
Silicon Laboratories Company Profile (Get Rating)
Silicon Laboratories Inc., a fabless semiconductor company, provides mixed-signal integrated circuits (ICs) in the United States, China, and internationally. The company offers microcontrollers and wireless products, including 8-bit mixed-signal and ultra-low-power 32-bit microcontrollers (MCU); wireless MCU connectivity solutions; single and multi-protocol system-on-chip (SoC) devices and modules; wireless protocols, MCUs, and SoCs; in-house protocol stacks; Micrium, a real-time operating system that helps simplify software development for IoT developers.It also provides sensor products comprising optical, relative humidity/temperature, and hall effect magnetic sensors; timing devices; multi-channel isolators, isolated drivers, isolated power converters, and mixed-signal devices; broadcast products, which include single-chip hybrid TV tuners and digital video demodulators, as well as AM/FM, HD radio, and DAB/DAB+ receivers; and hybrid software defined radio tuners, data receivers, and digital radio coprocessors. In addition, the company offers ProSLIC, a subscriber line interface circuits for voice over IP; ISOmodem embedded modems; and Power over Ethernet power source equipment and powered device ICs. It primarily markets its products to Internet of Things, Internet infrastructure, industrial automation, consumer, and automotive markets through direct sales force, as well as through a network of independent sales representatives and distributors. Silicon Laboratories Inc. was founded in 1996 and is headquartered in Austin, Texas.
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