Financial Survey: NeoMagic (OTCMKTS:NMGC) & Marvell Technology (NASDAQ:MRVL)

Marvell Technology (NASDAQ:MRVL) and NeoMagic (OTCMKTS:NMGC) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.

Volatility & Risk

Marvell Technology has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500. Comparatively, NeoMagic has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500.

Profitability

This table compares Marvell Technology and NeoMagic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marvell Technology	-18.30%	4.31%	3.02%
NeoMagic	N/A	N/A	N/A

Earnings & Valuation

This table compares Marvell Technology and NeoMagic”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marvell Technology	$5.28 billion	13.42	-$933.40 million	($1.13)	-72.42
NeoMagic	N/A	N/A	N/A	N/A	N/A

NeoMagic has lower revenue, but higher earnings than Marvell Technology.

Analyst Ratings

This is a summary of current recommendations and price targets for Marvell Technology and NeoMagic, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marvell Technology	0	1	20	1	3.00
NeoMagic	0	0	0	0	N/A

Marvell Technology currently has a consensus target price of $91.62, indicating a potential upside of 11.96%. Given Marvell Technology’s higher possible upside, analysts clearly believe Marvell Technology is more favorable than NeoMagic.

Insider and Institutional Ownership

83.5% of Marvell Technology shares are held by institutional investors. 0.3% of Marvell Technology shares are held by insiders. Comparatively, 12.7% of NeoMagic shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Marvell Technology beats NeoMagic on 8 of the 10 factors compared between the two stocks.

About Marvell Technology

Marvell Technology, Inc., together with its subsidiaries, provides data infrastructure semiconductor solutions, spanning the data center core to network edge. The company develops and scales complex System-on-a-Chip architectures, integrating analog, mixed-signal, and digital signal processing functionality. It offers a portfolio of Ethernet solutions, including controllers, network adapters, physical transceivers, and switches; single or multiple core processors; and custom application specific integrated circuits. The company also provides electro-optical products, including pulse amplitude modulations, coherent digital signal processors, laser drivers, trans-impedance amplifiers, silicon photonics, and data center interconnect solutions; fibre channel products comprising host bus adapters and controllers; storage controllers for hard disk drives and solid-state-drives; and host system interfaces, including serial attached SCSI, serial advanced technology attachment, peripheral component interconnect express, non-volatile memory express (NVMe), and NVMe over fabrics. It has operations in the United States, Argentina, China, India, Israel, Japan, Singapore, South Korea, Taiwan, and Vietnam. Marvell Technology, Inc. was incorporated in 1995 and is headquartered in Wilmington, Delaware.

About NeoMagic

NeoMagic Corporation designs and delivers semiconductors and software solutions for video, television, imaging, graphic, and audio devices. It offers microcontrollers; horizon digital picture frame and digital mobile TV solutions; and SOC processors, such as application processors and Neomobile TV solutions. The company, through its MercadoMagico.com division, operates an e-Commerce platform that allows user to buy and sell products from one another or buy premium electronic products. It sells its applications processors under the MiMagic brand name. The company was founded in 1993 and is based in Milpitas, California.