Marvell Technology (NASDAQ:MRVL – Get Free Report) and NeoMagic (OTCMKTS:NMGC – Get Free Report) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.
Volatility & Risk
Marvell Technology has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500. Comparatively, NeoMagic has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500.
Institutional & Insider Ownership
83.5% of Marvell Technology shares are held by institutional investors. 0.3% of Marvell Technology shares are held by company insiders. Comparatively, 12.7% of NeoMagic shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Marvell Technology | $5.28 billion | 13.09 | -$933.40 million | ($1.13) | -70.66 |
NeoMagic | N/A | N/A | N/A | N/A | N/A |
NeoMagic has lower revenue, but higher earnings than Marvell Technology.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Marvell Technology and NeoMagic, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Marvell Technology | 0 | 1 | 20 | 1 | 3.00 |
NeoMagic | 0 | 0 | 0 | 0 | N/A |
Marvell Technology presently has a consensus target price of $91.62, indicating a potential upside of 14.74%. Given Marvell Technology’s higher possible upside, equities research analysts clearly believe Marvell Technology is more favorable than NeoMagic.
Profitability
This table compares Marvell Technology and NeoMagic’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Marvell Technology | -18.30% | 4.31% | 3.02% |
NeoMagic | N/A | N/A | N/A |
Summary
Marvell Technology beats NeoMagic on 8 of the 10 factors compared between the two stocks.
About Marvell Technology
Marvell Technology, Inc., together with its subsidiaries, provides data infrastructure semiconductor solutions, spanning the data center core to network edge. The company develops and scales complex System-on-a-Chip architectures, integrating analog, mixed-signal, and digital signal processing functionality. It offers a portfolio of Ethernet solutions, including controllers, network adapters, physical transceivers, and switches; single or multiple core processors; and custom application specific integrated circuits. The company also provides electro-optical products, including pulse amplitude modulations, coherent digital signal processors, laser drivers, trans-impedance amplifiers, silicon photonics, and data center interconnect solutions; fibre channel products comprising host bus adapters and controllers; storage controllers for hard disk drives and solid-state-drives; and host system interfaces, including serial attached SCSI, serial advanced technology attachment, peripheral component interconnect express, non-volatile memory express (NVMe), and NVMe over fabrics. It has operations in the United States, Argentina, China, India, Israel, Japan, Singapore, South Korea, Taiwan, and Vietnam. Marvell Technology, Inc. was incorporated in 1995 and is headquartered in Wilmington, Delaware.
About NeoMagic
NeoMagic Corporation designs and delivers semiconductors and software solutions for video, television, imaging, graphic, and audio devices. It offers microcontrollers; horizon digital picture frame and digital mobile TV solutions; and SOC processors, such as application processors and Neomobile TV solutions. The company, through its MercadoMagico.com division, operates an e-Commerce platform that allows user to buy and sell products from one another or buy premium electronic products. It sells its applications processors under the MiMagic brand name. The company was founded in 1993 and is based in Milpitas, California.
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