Critical Survey: Meta Materials (NASDAQ:MMAT) versus MaxLinear (NYSE:MXL)

Meta Materials (NASDAQ:MMATGet Rating) and MaxLinear (NYSE:MXLGet Rating) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.

Risk and Volatility

Meta Materials has a beta of 1.81, meaning that its share price is 81% more volatile than the S&P 500. Comparatively, MaxLinear has a beta of 1.84, meaning that its share price is 84% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for Meta Materials and MaxLinear, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Meta Materials 0 0 1 0 3.00
MaxLinear 0 0 6 0 3.00

MaxLinear has a consensus price target of $53.89, suggesting a potential upside of 48.01%. Given MaxLinear’s higher possible upside, analysts clearly believe MaxLinear is more favorable than Meta Materials.

Valuation & Earnings

This table compares Meta Materials and MaxLinear’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Meta Materials $4.08 million 116.08 -$91.00 million -0.33 -3.97
MaxLinear $892.40 million 3.21 $41.97 million $1.52 23.95

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

Insider & Institutional Ownership

14.1% of Meta Materials shares are held by institutional investors. Comparatively, 90.3% of MaxLinear shares are held by institutional investors. 10.3% of Meta Materials shares are held by insiders. Comparatively, 8.5% of MaxLinear shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Meta Materials -845.99% -26.16% -20.66%
MaxLinear 11.34% 47.44% 23.15%

Summary

MaxLinear beats Meta Materials on 11 of the 13 factors compared between the two stocks.

About Meta Materials

(Get Rating)

Meta Materials Inc. invents, designs, develops, and manufactures various functional materials and nanocomposites. Its products include metaAIR, a laser glare protection eyewear; NANOWEB, a transparent conductive film; holoOPTIX, a holographic optical element; glucoWISE, a non-invasive glucose measurement device; and metaSURFACE, which allows an enhancement in signal to noise ratio of up to 40 times for magnetic resonance imaging scans. The company also develops and produces nano-optic structures and color-shifting foils that are used in authentication and brand protection applications in various markets, including banknotes, secure government documents, and commercial branding, as well as engages in the research, development, and manufacture of smart materials. Its customers are OEM providers in various industries, including aerospace, automotive, consumer electronics, communications, energy, banknote and brand security, and medical devices. The company was formerly known as Torchlight Energy Resources, Inc. and changed its name to Meta Materials Inc. in June 2021. Meta Materials Inc. was incorporated in 2007 and is headquartered in Dartmouth, Canada.

About MaxLinear

(Get Rating)

MaxLinear, Inc. provides radiofrequency (RF), high-performance analog, and mixed-signal communications systems-on-chip solutions (SoCs) for the connected home, wired and wireless infrastructure, and industrial and multi-market applications worldwide. Its products integrate various portions of a high-speed communication system, including RF, high-performance analog, mixed-signal, digital signal processing, security engines, data compression, networking layers, and power management. The company offers broadband radio transceiver front ends, data converters, embedded systems and software architecture, and architecture and system design for highly integrated end-to-end communication platform solutions. Its products are used in various electronic devices, such as cable data over cable service interface specifications (DOCSIS), fiber and DSL broadband modems and gateways; Wi-Fi and wireline routers for home networking; radio transceivers and modems for 4G/5G base-station and backhaul infrastructure; and fiber-optic modules for data center, metro, and long-haul transport networks, as well as power management and interface products. It serves electronics distributors, module makers, original equipment manufacturers (OEMs), and original design manufacturers (ODMs) 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.

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