Head-To-Head Review: MaxLinear (MXL) versus Its Peers

MaxLinear (NASDAQ:MXL) is one of 221 publicly-traded companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it contrast to its peers? We will compare MaxLinear to related companies based on the strength of its risk, earnings, profitability, analyst recommendations, dividends, institutional ownership and valuation.

Risk & Volatility

MaxLinear has a beta of 3.97, indicating that its stock price is 297% more volatile than the S&P 500. Comparatively, MaxLinear’s peers have a beta of 2.79, indicating that their average stock price is 179% more volatile than the S&P 500.

Valuation & Earnings

This table compares MaxLinear and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
MaxLinear	$467.64 million	-$136.68 million	-182.35
MaxLinear Competitors	$39.41 billion	$2.48 billion	7.98

MaxLinear’s peers have higher revenue and earnings than MaxLinear. MaxLinear is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

90.8% of MaxLinear shares are held by institutional investors. Comparatively, 54.8% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by institutional investors. 7.7% of MaxLinear shares are held by insiders. Comparatively, 11.5% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by 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.

Analyst Recommendations

This is a breakdown of current ratings and target prices for MaxLinear and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MaxLinear	1	3	5	1	2.60
MaxLinear Competitors	3487	12282	25652	988	2.57

MaxLinear presently has a consensus target price of $94.30, indicating a potential upside of 39.77%. As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 40.19%. Given MaxLinear’s peers higher possible upside, analysts plainly believe MaxLinear has less favorable growth aspects than its peers.

Profitability

This table compares MaxLinear and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MaxLinear	-4.45%	12.89%	7.50%
MaxLinear Competitors	-1,280.54%	-126.40%	-4.06%

Summary

MaxLinear beats its peers on 7 of the 13 factors compared.

About MaxLinear

MaxLinear, Inc. provides communications systems-on-chip solutions worldwide. Its products integrate various portions of a high-speed communication system, including radio frequency, high-performance analog, mixed-signal, digital signal processing, security engines, data compression and networking layers, and power management. The company's products are used in various electronic devices, such as radio transceivers and modems for 4G/5G base-station and backhaul infrastructure; optical transceivers targeting hyperscale data centers; Wi-Fi and wireline routers for home networking; broadband modems compliant with data over cable service interface specifications, passive optical fiber standards, and digital subscriber line, as well as power management and interface products. It serves electronics distributors, module makers, original equipment manufacturers, and original design manufacturers through a direct sales force, third-party sales representatives, and a network of distributors. The company was incorporated in 2003 and is headquartered in Carlsbad, California.