Marvell Technology Group (MRVL) & Kulicke and Soffa Industries (KLIC) Critical Contrast

Marvell Technology Group (NASDAQ: MRVL) and Kulicke and Soffa Industries (NASDAQ:KLIC) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.

Dividends

Marvell Technology Group pays an annual dividend of $0.24 per share and has a dividend yield of 1.1%. Kulicke and Soffa Industries does not pay a dividend. Marvell Technology Group pays out 23.1% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Marvell Technology Group and Kulicke and Soffa Industries’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Marvell Technology Group $2.41 billion 4.41 $520.83 million $1.04 20.60
Kulicke and Soffa Industries $809.00 million 1.92 $112.01 million $1.55 14.18

Marvell Technology Group has higher revenue and earnings than Kulicke and Soffa Industries. Kulicke and Soffa Industries is trading at a lower price-to-earnings ratio than Marvell Technology Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Marvell Technology Group and Kulicke and Soffa Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Marvell Technology Group 21.56% 13.13% 11.38%
Kulicke and Soffa Industries 3.10% 16.70% 12.86%

Insider & Institutional Ownership

92.9% of Marvell Technology Group shares are owned by institutional investors. Comparatively, 84.8% of Kulicke and Soffa Industries shares are owned by institutional investors. 6.8% of Marvell Technology Group shares are owned by insiders. Comparatively, 1.4% of Kulicke and Soffa Industries 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.

Volatility and Risk

Marvell Technology Group has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Kulicke and Soffa Industries has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Marvell Technology Group and Kulicke and Soffa Industries, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marvell Technology Group 0 5 21 0 2.81
Kulicke and Soffa Industries 1 1 2 0 2.25

Marvell Technology Group currently has a consensus price target of $25.70, indicating a potential upside of 20.00%. Kulicke and Soffa Industries has a consensus price target of $28.13, indicating a potential upside of 27.96%. Given Kulicke and Soffa Industries’ higher probable upside, analysts plainly believe Kulicke and Soffa Industries is more favorable than Marvell Technology Group.

Summary

Marvell Technology Group beats Kulicke and Soffa Industries on 10 of the 16 factors compared between the two stocks.

About Marvell Technology Group

Marvell Technology Group Ltd. designs, develops, and markets analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits. It offers a range of storage products, including hard disk drive (HDD) and solid-state drive controllers, as well as HDD components, such as HDD preamps components; and develops software-enabled silicon solutions comprising serial advanced technology attachment port multipliers, bridges, serial attached SCSI, and non-volatile memory express redundant array of independent disks controllers and converged storage processors for enterprises, data centers, and cloud computing businesses. The company also provides networking products, which includes Ethernet solutions consisting of Ethernet switches, Ethernet physical-layer transceivers, and single-chip network interface devices; and embedded communication processors. In addition, it offers a portfolio of connectivity solutions, including Wi-Fi and Wi-Fi/Bluetooth integrated system-on-a-chip products, which are integrated into various end devices, including enterprise access points, home gateways, multimedia devices, gaming products, printers, automotive infotainment and telematics units, and smart industrial devices. Further, the company provides printer-specific standard products, as well as full-custom and application-specific integrated circuits; and application processors. It has operations in the United States, China, Malaysia, the Philippines, Thailand, Singapore, India, Israel, Japan, South Korea, Taiwan, and Vietnam. Marvell Technology Group Ltd. was founded in 1995 and is headquartered in Hamilton, Bermuda.

About Kulicke and Soffa Industries

Kulicke and Soffa Industries, Inc. designs, manufactures, and sells capital equipment and expendable tools to assemble semiconductor devices. It operates in two segments, Capital Equipment, and Aftermarket Products and Services (APS). The Capital Equipment segment manufactures and sells a line of ball bonders, wafer level bonders, wedge bonders, advanced packaging, and electronic assembly solutions. The APS segment manufactures and sells various tools for a range of semiconductor packaging applications, which include capillaries, which are expendable tools used in ball bonders; dicing blades that are expendable tools for semiconductor manufacturers to cut silicon wafers into individual semiconductor die or to cut packaged semiconductor units into individual units; and bonding wedges, which are expendable tools used in heavy wire wedge bonders. This segment also provides spare parts, equipment repair, maintenance and servicing, training services, and equipment upgrading services. The company serves semiconductor device manufacturers, integrated device manufacturers, outsourced semiconductor assembly and test providers, other electronics manufacturers, industrial manufacturers, and automotive electronics suppliers primarily in the United States and the Asia/Pacific region. Kulicke and Soffa Industries, Inc. was founded in 1951 and is headquartered in Singapore.

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