Mellanox Technologies (MLNX) and JA Solar (JASO) Head to Head Analysis

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Mellanox Technologies (NASDAQ: MLNX) and JA Solar (NASDAQ:JASO) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Earnings and Valuation

This table compares Mellanox Technologies and JA Solar’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mellanox Technologies $863.89 million 4.95 -$19.42 million $0.91 88.79
JA Solar $3.02 billion 0.12 $44.41 million $0.98 7.64

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

Insider and Institutional Ownership

74.2% of Mellanox Technologies shares are held by institutional investors. Comparatively, 19.4% of JA Solar shares are held by institutional investors. 4.2% of Mellanox Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for Mellanox Technologies and JA Solar, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mellanox Technologies 1 4 8 0 2.54
JA Solar 2 1 0 0 1.33

Mellanox Technologies presently has a consensus target price of $94.90, suggesting a potential upside of 17.45%. JA Solar has a consensus target price of $6.00, suggesting a potential downside of 19.89%. Given Mellanox Technologies’ stronger consensus rating and higher probable upside, research analysts plainly believe Mellanox Technologies is more favorable than JA Solar.

Profitability

This table compares Mellanox Technologies and JA Solar’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mellanox Technologies 5.61% 12.26% 9.34%
JA Solar 1.54% 4.64% 1.49%

Risk & Volatility

Mellanox Technologies has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, JA Solar has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.

Summary

Mellanox Technologies beats JA Solar on 10 of the 14 factors compared between the two stocks.

About Mellanox Technologies

Mellanox Technologies, Ltd., a fabless semiconductor company, designs, manufactures, and sells interconnect products and solutions worldwide. Its products facilitate data transmission between servers, storage systems, communications infrastructure equipment, and other embedded systems. The company offers InfiniBand solutions, including switch and gateway integrated circuits (ICs), adapter cards, cables, modules, and software, as well as switch, gateway, and long-haul systems; Ethernet solutions, such as Ethernet switch products and Ethernet adapters for use in enterprise data center, high-performance computing, embedded environments, hyperscale, Web 2.0, and cloud data centers. It also provides adapters to server, storage, communications infrastructure, and embedded systems original equipment manufacturers (OEMs) as ICs or standard card form factors with PCI express interfaces; and switch ICs and systems to server, storage, communications infrastructure, and embedded systems OEMs to create switching equipment. In addition, the company supports server operating systems, including Linux, Windows, AIX, HPUX, Solaris, and VxWorks. It sells its products through its direct sales force, a network of sales representatives, and independent distributors. Mellanox Technologies, Ltd. was founded in 1999 and is headquartered in Sunnyvale, California.

About JA Solar

JA Solar Holdings Co., Ltd., together with its subsidiaries, designs, develops, manufactures, and sells solar power products based on crystalline silicon technologies worldwide. Its principal products include monocrystalline and multi-crystalline solar modules and cells. The company also provides monocrystalline and multi-crystalline silicon wafers; solar product processing services; and solar power plant project development and electricity generation services, as well as produces original equipment for manufacturers or customers under their brand names. It sells its solar power products to module manufacturers, system integrators, project developers, and distributors primarily under the JA Solar brand name. JA Solar Holdings Co., Ltd. was founded in 2005 and is based in Beijing, the People's Republic of China.

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