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

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MaxLinear $387.83 million 4.62 $61.29 million $0.26 103.00
ON Semiconductor $3.91 billion 2.56 $182.10 million $0.92 25.62

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 & Volatility

MaxLinear has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, ON Semiconductor has a beta of 2.02, indicating that its share price is 102% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for MaxLinear and ON Semiconductor, as reported by MarketBeat.com.

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

MaxLinear presently has a consensus target price of $32.00, indicating a potential upside of 19.49%. ON Semiconductor has a consensus target price of $22.09, indicating a potential downside of 6.29%. Given MaxLinear’s stronger consensus rating and higher probable upside, equities analysts plainly believe MaxLinear is more favorable than ON Semiconductor.

Profitability

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

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

Insider & Institutional Ownership

88.6% of MaxLinear shares are held by institutional investors. Comparatively, 99.5% of ON Semiconductor shares are held by institutional investors. 11.9% of MaxLinear shares are held by insiders. Comparatively, 1.6% of ON Semiconductor shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

ON Semiconductor beats MaxLinear on 9 of the 14 factors compared between the two stocks.

MaxLinear Company Profile

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).

ON Semiconductor Company Profile

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.

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