Emeren Group (NYSE:SOL) and MaxLinear (NYSE:MXL) Critical Review

MaxLinear (NYSE:MXL) and Emeren Group (NYSE:SOL) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, earnings, risk, valuation, institutional ownership and profitability.

Risk & Volatility

MaxLinear has a beta of 1.92, meaning that its share price is 92% more volatile than the S&P 500. Comparatively, Emeren Group has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500.

Insider & Institutional Ownership

90.8% of MaxLinear shares are owned by institutional investors. Comparatively, 44.1% of Emeren Group shares are owned by institutional investors. 8.6% of MaxLinear shares are owned by insiders. Comparatively, 18.0% of Emeren Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares MaxLinear and Emeren Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MaxLinear	-28.70%	-4.75%	-3.01%
Emeren Group	-12.70%	-0.88%	-0.69%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for MaxLinear and Emeren Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MaxLinear	0	6	5	0	2.45
Emeren Group	2	0	2	1	2.40

MaxLinear currently has a consensus price target of $25.70, indicating a potential upside of 39.45%. Emeren Group has a consensus price target of $5.38, indicating a potential upside of 175.64%. Given Emeren Group’s higher probable upside, analysts clearly believe Emeren Group is more favorable than MaxLinear.

Valuation and Earnings

This table compares MaxLinear and Emeren Group’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MaxLinear	$693.26 million	2.21	-$73.15 million	($1.89)	-9.75
Emeren Group	$104.67 million	1.12	-$9.32 million	($0.26)	-7.50

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

Summary

Emeren Group beats MaxLinear on 9 of the 15 factors compared between the two stocks.

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.

About Emeren Group

Emeren Group Ltd, through its subsidiaries, develops, builds, operates, and sells solar power projects. It owns and operates 3 gigawatt pipeline of projects and independent power producer assets. The company also develops community solar gardens; and sells project rights. In addition, it engages in engineering design; procurement of solar modules; balance-of-system components and other components; and construction contracting and management services. Further, the company generates and sells electricity. It operates in China, United States, UK, Spain, France, Poland, Italy, Hungary, and Internationally. The company was formerly known as ReneSola Ltd and changed its name to Emeren Group Ltd in January 2023. Emeren Group Ltd was founded in 2005 and is headquartered in Stamford, Connecticut.