Head-To-Head Contrast: MaxLinear (NYSE:MXL) versus Maxeon Solar Technologies (NASDAQ:MAXN)

MaxLinear (NYSE:MXL) and Maxeon Solar Technologies (NASDAQ:MAXN) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.

Earnings and Valuation

This table compares MaxLinear and Maxeon Solar Technologies’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MaxLinear	$693.26 million	1.61	-$73.15 million	($1.89)	-7.05
Maxeon Solar Technologies	$1.12 billion	0.00	-$275.83 million	($7.80)	-0.01

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

Analyst Ratings

This is a breakdown of current recommendations for MaxLinear and Maxeon Solar Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MaxLinear	0	6	4	0	2.40
Maxeon Solar Technologies	4	6	0	0	1.60

MaxLinear presently has a consensus target price of $24.67, indicating a potential upside of 85.05%. Maxeon Solar Technologies has a consensus target price of $4.41, indicating a potential upside of 5,728.37%. Given Maxeon Solar Technologies’ higher probable upside, analysts plainly believe Maxeon Solar Technologies is more favorable than MaxLinear.

Volatility and Risk

MaxLinear has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500. Comparatively, Maxeon Solar Technologies has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500.

Profitability

This table compares MaxLinear and Maxeon Solar Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MaxLinear	-42.38%	-12.39%	-7.82%
Maxeon Solar Technologies	-43.85%	-1,598.11%	-37.15%

Insider & Institutional Ownership

90.8% of MaxLinear shares are owned by institutional investors. Comparatively, 47.7% of Maxeon Solar Technologies shares are owned by institutional investors. 8.6% of MaxLinear shares are owned by insiders. Comparatively, 0.9% of Maxeon Solar Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

MaxLinear beats Maxeon Solar Technologies on 11 of the 14 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 Maxeon Solar Technologies

Maxeon Solar Technologies, Ltd. designs, manufactures, markets, and sells solar panels and related solar system components worldwide. The company provides interdigitated back contact and shingled solar cells and panels under the SunPower brand. It offers its products to dealers, project developers, system integrators, distributors, resellers, and residential and small-scale commercial customers. The company was incorporated in 2019 and is headquartered in Singapore.