Reviewing Xilinx (NASDAQ:XLNX) & MaxLinear (NASDAQ:MXL)

Xilinx (NASDAQ:XLNX) and MaxLinear (NYSE:MXL) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, institutional ownership, valuation, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of current recommendations for Xilinx and MaxLinear, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xilinx 0 11 12 0 2.52
MaxLinear 0 6 0 0 2.00

Xilinx currently has a consensus target price of $115.86, indicating a potential downside of 1.75%. MaxLinear has a consensus target price of $20.80, indicating a potential downside of 11.26%. Given Xilinx’s stronger consensus rating and higher probable upside, analysts plainly believe Xilinx is more favorable than MaxLinear.

Profitability

This table compares Xilinx and MaxLinear’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Xilinx 29.09% 34.72% 17.20%
MaxLinear -9.17% 8.68% 4.59%

Risk & Volatility

Xilinx has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500. Comparatively, MaxLinear has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500.

Dividends

Xilinx pays an annual dividend of $1.48 per share and has a dividend yield of 1.3%. MaxLinear does not pay a dividend. Xilinx pays out 42.5% of its earnings in the form of a dividend. Xilinx has increased its dividend for 8 consecutive years.

Insider & Institutional Ownership

84.5% of Xilinx shares are owned by institutional investors. Comparatively, 91.7% of MaxLinear shares are owned by institutional investors. 0.2% of Xilinx shares are owned by company insiders. Comparatively, 10.0% of MaxLinear shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Xilinx 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
Xilinx $3.06 billion 9.68 $889.75 million $3.48 33.89
MaxLinear $385.00 million 4.30 -$26.19 million $0.78 30.05

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

Summary

Xilinx beats MaxLinear on 13 of the 17 factors compared between the two stocks.

Xilinx Company Profile

Xilinx, Inc. designs and develops programmable devices and associated technologies worldwide. Its programmable devices comprise integrated circuits (ICs) in the form of programmable logic devices (PLDs), such as programmable system on chips, and three dimensional ICs; adaptive compute acceleration platform; software design tools to program the PLDs; software development environments and embedded platforms; targeted reference designs; printed circuit boards; and intellectual property (IP) core licenses covering Ethernet, memory controllers, Interlaken, and peripheral component interconnect express interfaces, as well as domain-specific IP in the areas of embedded, digital signal processing and connectivity, and market-specific IP cores. The company also offers development boards; development kits, including hardware, design tools, IP, and reference designs that are designed to streamline and accelerate the development of domain-specific and market-specific applications; and configuration products, such as one-time programmable and in-system programmable storage devices to configure field programmable gate arrays. In addition, it provides design, customer training, field engineering, and technical support services. The company offers its products to electronic equipment manufacturers in sub-segments, such as wireline and data center, wireless, aerospace and defense, test and measurement, industrial, scientific and medical, automotive, audio, video and broadcast, and consumer. Xilinx, Inc. sells its products through a network of independent distributors; and through direct sales to original equipment manufacturers and electronic manufacturing service providers, as well as independent sales representatives. The company has a strategic collaboration with ZF Friedrichshafen AG; and technology collaboration with Shenzhen Youjia Innovation Technology Co., Ltd. Xilinx, Inc. was founded in 1984 and is headquartered in San Jose, California.

MaxLinear Company Profile

MaxLinear, Inc. provides radio-frequency (RF), high-performance analog, and mixed-signal communications systems-on-chip solutions (SoCs) for the connected home, wired and wireless infrastructure, and industrial and multi-market applications worldwide. The company offers range of semiconductor products, such as RF receivers and RF receiver SoCs, wireless infrastructure backhaul RF receivers and modem SoCs, laser modulator drivers, transimpedance amplifiers, clock and data recovery circuits, interface solutions, power management products, and data encryption and compression products. It also provides range of electronic devices, including cable DOCSIS broadband modems and gateways; wireline connectivity devices for in-home networking applications; RF transceivers and modems; fiber-optic modules; video set-top boxes and gateways; hybrid analog and digital televisions, and direct broadcast satellite outdoor and indoor units; and power management and interface products. It sells its products to electronics distributors, module makers, original equipment manufacturers, and original design manufacturers through direct sales force, third party sales representatives, and a network of distributors. MaxLinear, Inc. was founded in 2003 and is headquartered in Carlsbad, California.

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