MaxLinear (NASDAQ:MXL – Get Free Report) and MKS (NASDAQ:MKSI – Get Free Report) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.
Profitability
This table compares MaxLinear and MKS’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MaxLinear | -18.24% | 2.24% | 1.30% |
| MKS | 10.15% | 24.72% | 7.80% |
Earnings and Valuation
This table compares MaxLinear and MKS”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MaxLinear | $467.64 million | 13.83 | -$136.68 million | ($1.19) | -59.93 |
| MKS | $3.93 billion | 3.70 | $295.00 million | $6.27 | 34.26 |
MKS has higher revenue and earnings than MaxLinear. MaxLinear is trading at a lower price-to-earnings ratio than MKS, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and target prices for MaxLinear and MKS, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MaxLinear | 1 | 3 | 5 | 0 | 2.44 |
| MKS | 1 | 2 | 12 | 1 | 2.81 |
MaxLinear currently has a consensus target price of $88.64, suggesting a potential upside of 24.28%. MKS has a consensus target price of $375.93, suggesting a potential upside of 74.99%. Given MKS’s stronger consensus rating and higher probable upside, analysts clearly believe MKS is more favorable than MaxLinear.
Volatility & Risk
MaxLinear has a beta of 3.93, indicating that its share price is 293% more volatile than the S&P 500. Comparatively, MKS has a beta of 2.03, indicating that its share price is 103% more volatile than the S&P 500.
Institutional & Insider Ownership
90.8% of MaxLinear shares are owned by institutional investors. Comparatively, 99.8% of MKS shares are owned by institutional investors. 7.7% of MaxLinear shares are owned by company insiders. Comparatively, 0.6% of MKS shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
MKS beats MaxLinear on 12 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 MKS
MKS Instruments, Inc. provides foundational technology solutions to semiconductor manufacturing, electronics and packaging, and specialty industrial applications in the United States, Germany, China, South Korea, and internationally. It operates through Vacuum Solutions Division (VSD), Photonics Solutions Division (PSD), and Material Solutions Division (MSD) segments. The VSD segment provides foundational technology solutions, including pressure measurement and control, flow measurement and control, gas and vapor delivery, gas composition analysis, electronic control technology, reactive gas generation and delivery, power generation and delivery, and vacuum technology. The PSD segment offers range of solutions, which include lasers, beam measurement and profiling, precision motion control, vibration isolation systems, photonics instruments, temperature sensing, opto-mechanical components, optical elements, systems for flexible PCB laser processing, and laser-based systems, as well as high density interconnect PCB and package manufacturing. The MSD segment develops, process, and manufactures technologies comprising advanced surface modification, electroless and electrolytic plating, and surface finishing for chemistry, equipment, software, and services markets, as well as high-technology applications. In addition, the company sells its products and services through direct sales, network of independent distributors, and sales representatives, as well as websites, including product catalogs. The company was incorporated in 1961 and is headquartered in Andover, Massachusetts.
Receive News & Ratings for MaxLinear Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MaxLinear and related companies with MarketBeat.com's FREE daily email newsletter.
-online-lending--digital-banking-etf-logo-1200x675.png){kind=logo}