MaxLinear (NYSE:MXL) and Adesto Technologies (NASDAQ:IOTS) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, valuation, dividends, profitability, earnings and institutional ownership.
Volatility & Risk
MaxLinear has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, Adesto Technologies has a beta of 1.78, indicating that its stock price is 78% more volatile than the S&P 500.
Insider & Institutional Ownership
94.9% of MaxLinear shares are held by institutional investors. Comparatively, 64.3% of Adesto Technologies shares are held by institutional investors. 11.5% of MaxLinear shares are held by company insiders. Comparatively, 18.4% of Adesto Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares MaxLinear and Adesto Technologies’ revenue, earnings per share and valuation.
Adesto Technologies has lower revenue, but higher earnings than MaxLinear. Adesto Technologies is trading at a lower price-to-earnings ratio than MaxLinear, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations and price targets for MaxLinear and Adesto Technologies, as provided by MarketBeat.
MaxLinear currently has a consensus target price of $21.83, indicating a potential upside of 0.48%. Adesto Technologies has a consensus target price of $10.00, indicating a potential upside of 88.68%. Given Adesto Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Adesto Technologies is more favorable than MaxLinear.
This table compares MaxLinear and Adesto Technologies’ net margins, return on equity and return on assets.
MaxLinear beats Adesto Technologies on 8 of the 14 factors compared between the two stocks.
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.
About Adesto Technologies
Adesto Technologies Corporation, together with its subsidiaries, provides application-specific semiconductors for the Internet of Things (IoT) era. Its portfolio of semiconductor and embedded technologies are optimized for connected IoT devices used in industrial, consumer, communications, and medical applications. The company manufactures its products using industry-standard floating gate technology and conductive bridging random access memory technology platforms. Its products include DataFlash for data-logging applications, such as industrial automation, home automation sensing, and health and fitness tracking; Fusion Serial Flash for use in various high-volume consumer applications comprising wearables, mobile, and other applications; EcoXip that enables improved processor performance and reduced system power consumption; and Standard Serial Flash to store boot or program code with a low pin count industry standard serial interface. The company's products also comprise Mavriq for IoT and other applications, which include camera sensors, Bluetooth low energy devices, wearables, gaming components, printer cartridges, medical equipment, and other devices; and Moneta for retail beacons, wearable medical and fitness devices, industrial and environmental sensors, agricultural monitors, and other low energy/long battery life or energy harvesting system applications. The company sells its products through a network of representatives and distributors to original equipment manufacturers and original design manufacturers in the United States, Rest of Americas, Europe, the Asia Pacific, and internationally. Adesto Technologies Corporation was incorporated in 2006 and is headquartered in Santa Clara, California.