Marvell Technology Group (MRVL) vs. Intel Corporation (INTC) Financial Comparison

Marvell Technology Group (NASDAQ: MRVL) and Intel Corporation (NASDAQ:INTC) are both mid-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, profitability, valuation and earnings.

Insider and Institutional Ownership

76.6% of Marvell Technology Group shares are owned by institutional investors. Comparatively, 67.0% of Intel Corporation shares are owned by institutional investors. 6.8% of Marvell Technology Group shares are owned by insiders. Comparatively, 0.1% of Intel Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Marvell Technology Group pays an annual dividend of $0.24 per share and has a dividend yield of 1.3%. Intel Corporation pays an annual dividend of $1.09 per share and has a dividend yield of 2.7%. Marvell Technology Group pays out 47.1% of its earnings in the form of a dividend. Intel Corporation pays out 41.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Marvell Technology Group has raised its dividend for 2 consecutive years. Intel Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Marvell Technology Group has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, Intel Corporation has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Marvell Technology Group and Intel Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marvell Technology Group 1 8 14 0 2.57
Intel Corporation 4 14 22 0 2.45

Marvell Technology Group presently has a consensus price target of $19.27, suggesting a potential upside of 5.44%. Intel Corporation has a consensus price target of $40.63, suggesting a potential upside of 2.41%. Given Marvell Technology Group’s stronger consensus rating and higher probable upside, analysts clearly believe Marvell Technology Group is more favorable than Intel Corporation.

Profitability

This table compares Marvell Technology Group and Intel Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Marvell Technology Group 10.97% 9.99% 8.66%
Intel Corporation 20.60% 21.86% 12.50%

Valuation & Earnings

This table compares Marvell Technology Group and Intel Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Marvell Technology Group $2.38 billion 3.81 $502.80 million $0.51 35.84
Intel Corporation $61.71 billion 3.02 $24.70 billion $2.61 15.20

Intel Corporation has higher revenue and earnings than Marvell Technology Group. Intel Corporation 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.

Summary

Intel Corporation beats Marvell Technology Group on 9 of the 17 factors compared between the two stocks.

Marvell Technology Group Company Profile

Marvell Technology Group Ltd. is a semiconductor provider of application-specific standard products. The Company is engaged in the design, development and sale of integrated circuits. The Company develops System-on-a-Chip (SoC) devices. It also develops integrated hardware platforms along with software that incorporates digital computing technologies designed and configured to provide an optimized computing solution. Its product portfolio includes devices for storage, networking and connectivity. In storage, it is engaged in data storage controller solutions spanning consumer, mobile, desktop and enterprise markets. Its storage solutions enable customers to engineer products for hard disk drives and solid state drives. Its networking products address end markets in cloud, enterprise, small and medium business and service provider networks. The Company’s connectivity products address end markets in consumer, enterprise, desktop, service provider networks and automotive.

Intel Corporation Company Profile

Intel Corporation is engaged in designing and manufacturing products and technologies, such as the cloud. The Company’s segments are Client Computing Group (CCG), Data Center Group (DCG), Internet of Things Group (IOTG), Non-Volatile Memory Solutions Group (NSG), Intel Security Group (ISecG), Programmable Solutions Group (PSG), All Other and New Technology Group (NTG). It delivers computer, networking and communications platforms to a set of customers, including original equipment manufacturers (OEMs), original design manufacturers (ODMs), cloud and communications service providers, as well as industrial, communications and automotive equipment manufacturers. It offers platforms to integrate various components and technologies, including a microprocessor and chipset, a stand-alone System-on-Chip (SoC), or a multichip package. The CCG operating segment includes platforms that integrates in notebook, two in one systems, desktop computers for consumers and businesses, tablets, and phones.

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