MaxLinear (NYSE:MXL) and Solaredge Technologies (NASDAQ:SEDG) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Volatility & Risk
MaxLinear has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, Solaredge Technologies has a beta of -0.47, suggesting that its share price is 147% less volatile than the S&P 500.
This table compares MaxLinear and Solaredge Technologies’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|MaxLinear||$420.32 million||2.68||-$9.18 million||$1.18||13.91|
|Solaredge Technologies||$607.04 million||2.95||$84.17 million||$2.25||17.51|
Solaredge Technologies has higher revenue and earnings than MaxLinear. MaxLinear is trading at a lower price-to-earnings ratio than Solaredge Technologies, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and recommmendations for MaxLinear and Solaredge Technologies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
MaxLinear currently has a consensus price target of $23.75, suggesting a potential upside of 44.73%. Solaredge Technologies has a consensus price target of $58.60, suggesting a potential upside of 48.77%. Given Solaredge Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Solaredge Technologies is more favorable than MaxLinear.
This table compares MaxLinear and Solaredge Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
94.9% of MaxLinear shares are owned by institutional investors. Comparatively, 73.8% of Solaredge Technologies shares are owned by institutional investors. 11.5% of MaxLinear shares are owned by insiders. Comparatively, 9.7% of Solaredge Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Solaredge Technologies beats MaxLinear on 11 of the 14 factors compared between the two stocks.
MaxLinear, Inc. provides radio-frequency (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. The company offers range of semiconductor products, such as RF receivers and RF receiver SoCs, wireless infrastructure backhaul RF receivers and modem SoCs, laser modulator drivers, transimpedance amplifiers, clock and data recovery circuits, interface solutions, power management products, and data encryption and compression products. It also provides range of electronic devices, including cable DOCSIS broadband modems and gateways; wireline connectivity devices for in-home networking applications; RF transceivers and modems; fiber-optic modules; video set-top boxes and gateways; hybrid analog and digital televisions, and direct broadcast satellite outdoor and indoor units; and power management and interface products. It sells its products to electronics distributors, module makers, original equipment manufacturers, and original design manufacturers through direct sales force, third party sales representatives, and a network of distributors. MaxLinear, Inc. was incorporated in 2003 and is headquartered in Carlsbad, California.
About Solaredge Technologies
SolarEdge Technologies, Inc., together with its subsidiaries, designs, develops, and sells direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations in Israel, the United States, the Netherlands, Europe, and internationally. The company's DC optimized inverter systems include power optimizers and inverters, as well as a cloud-based monitoring platform. Its products are used in a range of solar market segments, such as residential, commercial, and small utility-scale solar installations. The company sells its products directly to solar installers, as well as engineering, procurement, and construction firms; and indirectly to solar installers through distributors and electrical equipment wholesalers, as well as PV module manufacturers. SolarEdge Technologies, Inc. was founded in 2006 and is headquartered in Herzliya, Israel.
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