Sumco (OTCMKTS:SUOPY) versus MaxLinear (NYSE:MXL) Head to Head Survey

Sumco (OTCMKTS:SUOPY – Get Rating) and MaxLinear (NYSE:MXL – Get Rating) are both mid-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, profitability and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sumco	14.51%	11.06%	7.34%
MaxLinear	11.16%	46.03%	23.70%

Analyst Ratings

This is a summary of recent ratings and price targets for Sumco and MaxLinear, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sumco	0	0	0	0	N/A
MaxLinear	1	0	5	0	2.67

MaxLinear has a consensus target price of $46.22, suggesting a potential upside of 35.75%. Given MaxLinear’s higher possible upside, analysts plainly believe MaxLinear is more favorable than Sumco.

Institutional & Insider Ownership

0.0% of Sumco shares are owned by institutional investors. Comparatively, 90.3% of MaxLinear shares are owned by institutional investors. 8.5% of MaxLinear shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Sumco has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, MaxLinear has a beta of 1.92, indicating that its stock price is 92% more volatile than the S&P 500.

Earnings & Valuation

This table compares Sumco and MaxLinear’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sumco	$3.06 billion	1.65	$374.20 million	$2.88	10.03
MaxLinear	$1.12 billion	2.39	$125.04 million	$1.55	21.97

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

Summary

MaxLinear beats Sumco on 9 of the 13 factors compared between the two stocks.

About Sumco

(Get Rating)

SUMCO Corp. engages in the manufacture and sale of silicon wafers for semiconductor industry. Its silicon products range from single crystal silicon ingots to polished, epitaxial and silicon-on-insulator wafers. The company was founded on July 30, 1999 and is headquartered in Tokyo, Japan.

About MaxLinear

(Get Rating)

MaxLinear, Inc. engages in the provision of communications systems-on-chip, or SoC, solutions used in broadband, mobile and wireline infrastructure, data center, and industrial and multi-market applications. Its products include cable broadband modems and gateways, wireline connectivity devices, radio frequency transceivers, fiber-optic modules, video set-top boxes and gateways, hybrid analog and digital televisions, direct broadcast satellite outdoor and indoor units, and power management and interface products. The company was founded by Kimihiko Imura, Curtis C. Ling and Kishore V. Seendripu on September 25, 2003 and is headquartered in Carlsbad, CA.