MaxLinear (NASDAQ:MXL) vs. On Track Innovations (OTCMKTS:OTIVF) Financial Analysis

MaxLinear (NASDAQ:MXL) and On Track Innovations (OTCMKTS:OTIVF) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares MaxLinear and On Track Innovations’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MaxLinear	-57.37%	-19.22%	-12.07%
On Track Innovations	-63.06%	-1,110.80%	-62.59%

Insider and Institutional Ownership

90.8% of MaxLinear shares are owned by institutional investors. Comparatively, 33.6% of On Track Innovations shares are owned by institutional investors. 8.6% of MaxLinear shares are owned by insiders. Comparatively, 8.0% of On Track Innovations shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

MaxLinear has a beta of 1.87, meaning that its stock price is 87% more volatile than the S&P 500. Comparatively, On Track Innovations has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for MaxLinear and On Track Innovations, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MaxLinear	0	3	4	0	2.57
On Track Innovations	0	0	0	0	0.00

MaxLinear currently has a consensus target price of $23.14, indicating a potential upside of 18.38%. Given MaxLinear’s stronger consensus rating and higher probable upside, equities analysts plainly believe MaxLinear is more favorable than On Track Innovations.

Valuation and Earnings

This table compares MaxLinear and On Track Innovations”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MaxLinear	$393.71 million	4.19	-$73.15 million	($2.72)	-7.19
On Track Innovations	$14.88 million	0.00	-$11.66 million	N/A	N/A

On Track Innovations has lower revenue, but higher earnings than MaxLinear.

Summary

MaxLinear beats On Track Innovations on 10 of the 11 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 On Track Innovations

On Track Innovations Ltd., together with its subsidiaries, designs, develops, and markets cashless payment solutions worldwide. It operates in two segments, Retail and Petroleum. The company's product portfolio includes readers, controllers and terminals, management software, payment services, and Payment System as a Service (PSaaS). It offers OtiMetry System that incorporates telemetry, sales, and operations into solution with cloud control, and real-time online management and alerts; TRIO-IQ, a telemetry gateway and EMV payment reader; TRIO, a payment device for installation in kiosks and vending machines; UNO-8 and UNO-PLUS contactless readers for unattended retail environments with self-service payment stations, including ATMs, toll roads, access control, and mass transit validators; and controllers and gateways comprises OTI TeleBox, a machine-to-machine controller that enables the communication between machines, and GoBox, a machine-to-machine controller that communicates between machines, cashless readers, and remote servers. The company also provides a terminal management system, which is a cloud-based system that provides real-time control and insights of each machine enabling operators to remotely manage their terminal's fleet; and cloud based vending management system and vending BI. In addition, it offers payment services, including payment service API, an application programming interface; close loop payment that supports close-loop payment cards; and APIs for integration with mobile payment solutions, as well as original equipment manufacturer (OEM) payment solutions. The company's readers are certified by various card associations and support Apple Pay, Google Pay, Samsung Pay, MIFARE, FeliCa, and others. The company was formerly known as De-Bug Innovations Ltd. and changed its name to On Track Innovations Ltd. in July 1991. On Track Innovations Ltd. was incorporated in 1990 and is headquartered in Yokneam Illit, Israel.