MaxLinear (MXL) and ON Semiconductor (ON) Head to Head Review

ON Semiconductor (NASDAQ: ON) and MaxLinear (NYSE:MXL) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, earnings, valuation, dividends and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
ON Semiconductor 7.22% 22.97% 6.91%
MaxLinear 4.73% 20.96% 11.82%

Insider and Institutional Ownership

99.8% of ON Semiconductor shares are held by institutional investors. Comparatively, 88.6% of MaxLinear shares are held by institutional investors. 1.6% of ON Semiconductor shares are held by company insiders. Comparatively, 11.9% of MaxLinear shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares ON Semiconductor and MaxLinear’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ON Semiconductor $3.91 billion 2.57 $182.10 million $0.92 25.75
MaxLinear $387.83 million 4.33 $61.29 million $0.26 96.42

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

Risk and Volatility

ON Semiconductor has a beta of 2.08, meaning that its stock price is 108% more volatile than the S&P 500. Comparatively, MaxLinear has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for ON Semiconductor and MaxLinear, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ON Semiconductor 1 7 11 0 2.53
MaxLinear 0 0 4 0 3.00

ON Semiconductor presently has a consensus target price of $22.09, indicating a potential downside of 6.76%. MaxLinear has a consensus target price of $32.00, indicating a potential upside of 27.64%. Given MaxLinear’s stronger consensus rating and higher probable upside, analysts plainly believe MaxLinear is more favorable than ON Semiconductor.

Summary

ON Semiconductor beats MaxLinear on 8 of the 14 factors compared between the two stocks.

About ON Semiconductor

ON Semiconductor Corporation offers a portfolio of sensors, power management, connectivity, custom and system on chip (SoC), analog, logic, timing, and discrete devices. The Company’s segments include Power Solutions Group, Analog Solutions Group and Image Sensor Group. The Power Solutions Group offers a range of discrete, module and integrated semiconductor products. The Analog Solutions Group designs and develops analog, mixed-signal and logic application specific integrated circuits (ASICs) and application specific standard products (ASSPs), and power solutions. The Image Sensor Group designs and develops complementary metal oxide semiconductor (CMOS) and charge-coupled device (CCD) image sensors, as well as proximity sensors, image signal processors, and actuator drivers for autofocus and image stabilization for various end users in the automotive, industrial, consumer, wireless, medical, and aerospace/defense markets.

About MaxLinear

MaxLinear, Inc. is a provider of radio frequency (RF) and mixed-signal integrated circuits for cable and satellite broadband communications and the connected home, and wired and wireless infrastructure markets. The Company’s RF receiver products capture and process digital and analog broadband signals to be decoded for various applications. These products include both RF receivers and RF receiver systems-on-chip (SoCs), which incorporate its radio system architecture and the functionality necessary to receive and demodulate broadband signals, modem solutions, and physical medium devices that provide a constant current source, current-to-voltage regulation, and data alignment and retiming functionality in optical interconnect applications. It provides semiconductor solutions for the connected home, specifically Multimedia over Coax Alliance (MoCA) solutions. It sells its products to original equipment manufacturers (OEMs), module makers and original design manufacturers (ODMs).

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

Leave a Reply