ASML (NASDAQ:ASML – Get Free Report) and MaxLinear (NASDAQ:MXL – Get Free Report) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.
Insider and Institutional Ownership
26.1% of ASML shares are owned by institutional investors. Comparatively, 90.8% of MaxLinear shares are owned by institutional investors. 7.7% of MaxLinear shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares ASML and MaxLinear”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ASML | $36.95 billion | 16.39 | $10.87 billion | $40.62 | 38.70 |
| MaxLinear | $467.64 million | 12.31 | -$136.68 million | ($0.37) | -171.51 |
ASML has higher revenue and earnings than MaxLinear. MaxLinear is trading at a lower price-to-earnings ratio than ASML, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares ASML and MaxLinear’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ASML | 34.10% | 64.24% | 26.08% |
| MaxLinear | -4.45% | 12.89% | 7.50% |
Risk and Volatility
ASML has a beta of 1.77, meaning that its share price is 77% more volatile than the S&P 500. Comparatively, MaxLinear has a beta of 3.93, meaning that its share price is 293% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for ASML and MaxLinear, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ASML | 3 | 2 | 17 | 3 | 2.80 |
| MaxLinear | 1 | 3 | 5 | 0 | 2.44 |
ASML presently has a consensus target price of $2,079.12, suggesting a potential upside of 32.28%. MaxLinear has a consensus target price of $94.30, suggesting a potential upside of 48.60%. Given MaxLinear’s higher probable upside, analysts clearly believe MaxLinear is more favorable than ASML.
Summary
ASML beats MaxLinear on 10 of the 15 factors compared between the two stocks.
About ASML
ASML Holding N.V. develops, produces, markets, sells, and services advanced semiconductor equipment systems for chipmakers. It offers advanced semiconductor equipment systems, including lithography, metrology, and inspection systems. The company also provides extreme ultraviolet lithography systems; and deep ultraviolet lithography systems comprising immersion and dry lithography solutions to manufacture various range of semiconductor nodes and technologies. In addition, it offers metrology and inspection systems, including YieldStar optical metrology systems to assess the quality of patterns on the wafers; and HMI electron beam solutions to locate and analyze individual chip defects. Further, the company provides computational lithography solutions, and lithography systems and control software solutions; and refurbishes and upgrades lithography systems, as well as offers customer support and related services. It operates in Japan, South Korea, Singapore, Taiwan, China, rest of Asia, the Netherlands, rest of Europe, the Middle East, Africa, and the United States. The company was formerly known as ASM Lithography Holding N.V. and changed its name to ASML Holding N.V. in 2001. ASML Holding N.V. was founded in 1984 and is headquartered in Veldhoven, the Netherlands.
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.
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