Mindspeed Technologies (NASDAQ:MSPD) and Marvell Technology Group (MRVL) Financial Contrast

Marvell Technology Group (NASDAQ: MRVL) and Mindspeed Technologies (NASDAQ:MSPD) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, profitability, valuation, risk and earnings.

Insider and Institutional Ownership

78.9% of Marvell Technology Group shares are held by institutional investors. 6.8% of Marvell Technology Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Marvell Technology Group and Mindspeed Technologies’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Marvell Technology Group $2.32 billion 4.52 $21.15 million $0.57 37.46
Mindspeed Technologies N/A N/A N/A ($2.20) N/A

Marvell Technology Group has higher revenue and earnings than Mindspeed Technologies. Mindspeed Technologies 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 Mindspeed Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Marvell Technology Group 16.53% 11.93% 10.31%
Mindspeed Technologies N/A N/A N/A

Dividends

Marvell Technology Group pays an annual dividend of $0.24 per share and has a dividend yield of 1.1%. Mindspeed Technologies does not pay a dividend. Marvell Technology Group pays out 42.1% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations and price targets for Marvell Technology Group and Mindspeed Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marvell Technology Group 0 7 17 0 2.71
Mindspeed Technologies 0 0 0 0 N/A

Marvell Technology Group currently has a consensus price target of $24.36, suggesting a potential upside of 14.08%.

Summary

Marvell Technology Group beats Mindspeed Technologies on 9 of the 10 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.

Mindspeed Technologies Company Profile

Mindspeed Technologies, Inc. (Mindspeed) designs, develops and sells semiconductor solutions for communications applications in the wireline and wireless network infrastructure, which includes enterprise networks, broadband access networks (fixed and mobile), and metropolitan and wide area networks (WAN). Mindspeed has organized its solutions for these networks into three product families: communications convergence processing (formerly known as multiservice access), high-performance analog and WAN communications. Its products are sold to original equipment manufacturers (OEMs) for use in a variety of network infrastructure equipment. The Company’s customers include Alcatel-Lucent, Cisco Systems, Inc., Huawei Technologies Co. Ltd. and Zhongxing Telecom Equipment Corp. Effective December 18, 2013, M/A-Com Technology Solutions Holdings Inc acquired the entire interest of Mindspeed Technologies Inc.

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