Comparing MaxLinear (NYSE:MXL) & SunPower (NASDAQ:SPWR)

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

Profitability

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

Net Margins Return on Equity Return on Assets
MaxLinear 11.34% 47.44% 23.15%
SunPower 4.21% -0.82% -0.22%

Institutional & Insider Ownership

90.3% of MaxLinear shares are held by institutional investors. Comparatively, 36.1% of SunPower shares are held by institutional investors. 8.5% of MaxLinear shares are held by insiders. Comparatively, 0.7% of SunPower shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares MaxLinear and SunPower’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MaxLinear $892.40 million 3.19 $41.97 million $1.52 23.86
SunPower $1.32 billion 2.18 -$37.36 million $0.33 50.18

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

Volatility and Risk

MaxLinear has a beta of 1.85, suggesting that its share price is 85% more volatile than the S&P 500. Comparatively, SunPower has a beta of 1.87, suggesting that its share price is 87% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for MaxLinear and SunPower, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MaxLinear 0 0 4 0 3.00
SunPower 3 12 4 0 2.05

MaxLinear currently has a consensus price target of $48.13, indicating a potential upside of 32.72%. SunPower has a consensus price target of $22.00, indicating a potential upside of 32.85%. Given SunPower’s higher possible upside, analysts clearly believe SunPower is more favorable than MaxLinear.

Summary

MaxLinear beats SunPower on 9 of the 13 factors compared between the two stocks.

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.

About SunPower

(Get Rating)

SunPower Corporation, a solar technology and energy services provider, offers solar, storage, and home energy solutions to customers primarily in the United States and Canada. It operates through Residential, Light Commercial; Commercial and Industrial Solutions; and Others segments. The company provides solar, storage, and home energy solutions and components through a combination of its third-party installing and non-installing dealer network and resellers, as well as in-house sales team; and turn-key engineering, procurement, and construction services and sale of energy under power purchase agreements. It also offers commercial roof, carport, and ground mounted systems; and post-installation monitoring and maintenance services. In addition, the company provides residential leasing services, as well as sells inverters manufactured by third parties. It primarily serves investors, financial institutions, project developers, electric utilities, independent power producers, commercial and governmental entities, production home builders, residential owners, and small commercial building owners. The company was incorporated in 1985 and is headquartered in San Jose, California. SunPower Corporation is a subsidiary of TotalEnergies SE.

Receive News & Ratings for MaxLinear Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MaxLinear and related companies with MarketBeat.com's FREE daily email newsletter.