Diodes (DIOD) vs. MaxLinear (MXL) Head to Head Analysis

Diodes (NASDAQ:DIOD) and MaxLinear (NYSE:MXL) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitability.

Earnings & Valuation

This table compares Diodes and MaxLinear’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Diodes $1.05 billion 1.53 -$1.80 million $1.37 23.50
MaxLinear $420.32 million 3.08 -$9.18 million $1.18 15.93

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Diodes and MaxLinear, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Diodes 0 0 4 0 3.00
MaxLinear 0 5 2 0 2.29

Diodes presently has a consensus target price of $38.00, suggesting a potential upside of 18.05%. MaxLinear has a consensus target price of $21.83, suggesting a potential upside of 16.13%. Given Diodes’ stronger consensus rating and higher probable upside, analysts plainly believe Diodes is more favorable than MaxLinear.

Profitability

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

Net Margins Return on Equity Return on Assets
Diodes 3.75% 11.99% 7.48%
MaxLinear -11.18% 15.35% 7.67%

Volatility and Risk

Diodes has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, MaxLinear has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.

Insider & Institutional Ownership

78.7% of Diodes shares are held by institutional investors. Comparatively, 94.9% of MaxLinear shares are held by institutional investors. 6.7% of Diodes shares are held by insiders. Comparatively, 11.5% of MaxLinear shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Diodes beats MaxLinear on 8 of the 14 factors compared between the two stocks.

About Diodes

Diodes Incorporated, together with its subsidiaries, designs, manufactures, and supplies application-specific standard products in the discrete, logic, and analog and mixed semiconductor markets in Asia, North America, Europe, and internationally. It primarily focuses on low pin count semiconductor devices with one or more active or passive components. The company offers discrete semiconductor products, such as performance Schottky rectifiers and diodes; Zener diodes, including tight tolerance and low operating current type performance Zener diodes; standard, fast, super-fast, and ultra-fast recovery rectifiers; bridge rectifiers; switching diodes; small signal bipolar and pre-biased transistors; MOSFETs; thyristor surge protection devices; and transient voltage suppressors. It also provides analog products comprising power management devices consisting of AC-DC and DC-DC converters, USB power switches, and low dropout and linear voltage regulators; linear devices, such as operational amplifiers and comparators, current monitors, voltage references, and reset generators; LED lighting drivers; audio amplifiers; and sensor products, including hall-effect sensors and motor drivers. In addition, the company offers standard logic products comprising low-voltage complementary metal–oxide–semiconductor (CMOS) and high-speed CMOS devices; ultra-low power CMOS logic products and analog switches; multichip products and co-packaged discrete, analog, and mixed-signal silicon in miniature packages; silicon and silicon epitaxial wafers; and crystals and oscillators. It sells its products to the consumer electronics, computing, communications, industrial, and automotive markets through direct sales and marketing personnel, independent sales representatives, and distributors. Diodes Incorporated was founded in 1959 and is headquartered in Plano, Texas.

About MaxLinear

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 incorporated in 2003 and is headquartered in Carlsbad, California.

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