Reviewing SolarEdge Technologies (NASDAQ:SEDG) and Marvell Technology (NASDAQ:MRVL)

Marvell Technology (NASDAQ:MRVLGet Free Report) and SolarEdge Technologies (NASDAQ:SEDGGet Free Report) are both business services companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, earnings, institutional ownership and risk.

Risk and Volatility

Marvell Technology has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500. Comparatively, SolarEdge Technologies has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Marvell Technology and SolarEdge Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marvell Technology 0 2 20 1 2.96
SolarEdge Technologies 9 18 2 0 1.76

Marvell Technology presently has a consensus target price of $91.77, indicating a potential upside of 4.49%. SolarEdge Technologies has a consensus target price of $22.79, indicating a potential upside of 114.21%. Given SolarEdge Technologies’ higher possible upside, analysts clearly believe SolarEdge Technologies is more favorable than Marvell Technology.

Insider and Institutional Ownership

83.5% of Marvell Technology shares are owned by institutional investors. Comparatively, 95.1% of SolarEdge Technologies shares are owned by institutional investors. 0.3% of Marvell Technology shares are owned by company insiders. Comparatively, 0.7% of SolarEdge Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Marvell Technology and SolarEdge Technologies’ 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%
SolarEdge Technologies -158.19% -65.79% -32.71%

Earnings & Valuation

This table compares Marvell Technology and SolarEdge Technologies”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Marvell Technology $5.51 billion 14.13 -$933.40 million ($1.11) -79.13
SolarEdge Technologies $2.98 billion 0.21 $34.33 million ($29.04) -0.37

SolarEdge Technologies has lower revenue, but higher earnings than Marvell Technology. Marvell Technology is trading at a lower price-to-earnings ratio than SolarEdge Technologies, indicating that it is currently the more affordable of the two stocks.

Summary

Marvell Technology beats SolarEdge Technologies on 9 of the 15 factors compared between the two stocks.

About Marvell Technology

(Get Free Report)

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 SolarEdge Technologies

(Get Free Report)

SolarEdge Technologies, Inc., together with its subsidiaries, designs, develops, manufactures, and sells direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations in the United States, Germany, the Netherlands, Italy, rest of Europe, and internationally. It operates in two segments, Solar and Energy Storage. The Solar segment offers power optimizers, inverters, batteries, storage solutions, electric vehicle chargers, smart tracking solutions, and smart energy management software products; Monitoring platform, a cloud-based monitoring platform, which collects power, voltage, current, and system data sent from inverters and power optimizers; and MySolarEdge app, that enables system owners to track their real-time system production and household energy consumption. This segment also provides Designer platform, an web-based tool that helps solar professionals to plan, build, and validate residential and commercial systems; Mapper application for registering the physical layout of new PV sites installed with DC optimized inverter systems; SetApp application that activates and configurate inverters; and grid services. The Energy Storage segment provides lithium-ion cells and containerized battery systems (BESS) solutions for commercial, industrial, and utility markets; modules and racks; purpose-built components and solutions, and hardware and software tools; and pre and post sales engineering support for designing, building, and managing battery and system solutions. The company offers e-mobility products, automated machines, and UPS products; and pre-sales support, ongoing trainings, and technical support and after installation services. It sells its products through solar installers and distributors, electrical equipment wholesalers, and PV module manufacturers, as well as engineering, procurement, and construction firms. SolarEdge Technologies, Inc. was incorporated in 2006 and is headquartered in Herzliya, Israel.

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