Financial analysis of Rambus (NASDAQ:RMBS) versus MaxLinear (NYSE:MXL)


MaxLinear (NYSE:MXL – Get Rating) and Rambus (NASDAQ:RMBS – Get Rating) are both mid-size IT and technology companies, but which business is superior? We’ll compare the two companies based on earnings strength, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.

Benefits and evaluation

This table compares the revenue, earnings per share and valuation of MaxLinear and Rambus.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
MaxLinear $892.40 million 3.36 $41.97 million $0.90 43.13
Rambus $328.30 million 7.99 $18.33 million ($0.42) -56.64

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

Profitability

This table compares the net margins, return on equity and return on assets of MaxLinear and Rambus.

Net margins Return on equity return on assets
MaxLinear 7.58% 40.53% 18.28%
Rambus -12.68% 17.27% 12.39%

Analyst Recommendations

This is a breakdown of the current ratings and recommendations for MaxLinear and Rambus, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
MaxLinear 0 0 9 0 3.00
Rambus 0 1 5 0 2.83

MaxLinear currently has a consensus target price of $67.00, indicating a potential upside of 72.59%. Rambus has a consensus target price of $31.33, indicating a potential upside of 31.71%. Given MaxLinear’s stronger consensus rating and likely higher upside, equity research analysts clearly believe MaxLinear is more favorable than Rambus.

Insider and Institutional Ownership

88.2% of MaxLinear shares are held by institutional investors. By comparison, 87.0% of Rambus shares are held by institutional investors. 8.5% of MaxLinear shares are held by insiders of the company. By comparison, 1.5% of Rambus shares are held by company insiders. Strong institutional ownership indicates that hedge funds, large money managers, and endowments believe a company is poised for long-term growth.

Volatility and risk

MaxLinear has a beta of 1.98, indicating its stock price is 98% more volatile than the S&P 500. In comparison, Rambus has a beta of 1.19, indicating its stock price is 19% more volatile than the S&P 500.

Summary

MaxLinear beats Rambus on 13 out of 14 factors compared between the two stocks.

About MaxLinear

(Get a rating)

MaxLinear, Inc. provides radio frequency (RF), high-performance analog, and mixed-signal communication system-on-chip (SoC) solutions for the connected home, wired and wireless infrastructure, as well as industrial and multi-market applications worldwide entire. Its products integrate various parts of a high-speed communication system, including RF, high-performance analog, mixed signal, digital signal processing, security engines, data compression, network layers and power management. The Company offers wideband radio transceiver front ends, data converters, embedded systems and software architecture, and system architecture and design for end-to-end communications platform solutions. highly integrated tip. Its products are used in various electronic devices, such as data over cable service interface specifications (DOCSIS), fiber and DSL broadband modems and gateways; Wi-Fi and wired routers for home networking; radio transceivers and modems for 4G/5G base station and backhaul infrastructure; and fiber optic modules for data centers, subways, and long-distance transportation networks, as well as power management and interface products. It serves electronics distributors, module manufacturers, original equipment manufacturers (OEMs) and original design manufacturers (ODMs) through a direct sales force, third-party sales representatives and… a network of distributors. The company was incorporated in 2003 and is based in Carlsbad, California.

About Rambus

(Get a rating)

Rambus Inc. provides semiconductor products in the United States, Taiwan, South Korea, Japan, Europe, Canada, Singapore, China and internationally. The company offers DDR memory interface chips, including DDR5, DDR4 and DDR3 memory interface chips to module manufacturers and OEMs; Silicon IP including interface and security IP solutions that move and protect data in advanced applications; and physical interface and digital controller IP to deliver industry-leading integrated memory and interconnect subsystems. It also provides a patent portfolio covering memory architecture, high-speed serial links and security products. The company markets its products and services through its direct sales force and distributors. Rambus Inc. was incorporated in 1990 and is headquartered in San Jose, California.



Get news and reviews for MaxLinear Daily – Enter your email address below to receive a concise daily summary of the latest news and analyst ratings for MaxLinear and related companies with MarketBeat.com’s FREE daily newsletter.

Sarah J. Greer