Head-To-Head Review: MaxLinear (NASDAQ:MXL) and indie Semiconductor (NASDAQ:INDI)

indie Semiconductor (NASDAQ:INDI) and MaxLinear (NASDAQ:MXL) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.

Volatility and Risk

indie Semiconductor has a beta of 2.99, indicating that its stock price is 199% more volatile than the S&P 500. Comparatively, MaxLinear has a beta of 3.93, indicating that its stock price is 293% more volatile than the S&P 500.

Institutional and Insider Ownership

67.7% of indie Semiconductor shares are owned by institutional investors. Comparatively, 90.8% of MaxLinear shares are owned by institutional investors. 2.6% of indie Semiconductor shares are owned by insiders. Comparatively, 7.7% of MaxLinear shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares indie Semiconductor and MaxLinear”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
indie Semiconductor	$217.39 million	1.99	-$143.07 million	($0.73)	-2.56
MaxLinear	$467.64 million	14.95	-$136.68 million	($1.19)	-64.80

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for indie Semiconductor and MaxLinear, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
indie Semiconductor	1	2	0	0	1.67
MaxLinear	1	3	5	0	2.44

indie Semiconductor currently has a consensus price target of $3.92, suggesting a potential upside of 109.45%. MaxLinear has a consensus price target of $88.64, suggesting a potential upside of 14.95%. Given indie Semiconductor’s higher probable upside, research analysts clearly believe indie Semiconductor is more favorable than MaxLinear.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
indie Semiconductor	-65.18%	-32.02%	-13.61%
MaxLinear	-18.24%	2.24%	1.30%

Summary

MaxLinear beats indie Semiconductor on 11 of the 14 factors compared between the two stocks.

About indie Semiconductor

indie Semiconductor, Inc. provides automotive semiconductors and software solutions for advanced driver assistance systems, autonomous vehicle, in-cabin, connected car, and electrification applications in the United States, South America, rest of North America, Greater China, South Korea, rest of the Asia Pacific, and Europe. It offers ultrasonic sensors for parking assist and systems; radar sensors for audio assistance and reverse information; front cameras for vehicle detection, collision avoidance, and sign reading; and side/inside cameras for blind spot and lane change assist, and driver behavior monitoring. The company also provides LiDAR for distance, speed, and obstacle detection, collision avoidance, and emergency brake system; and long range RADAR for audio assistance, obstacle detection, and ACC stop and go. In addition, it designs and manufactures photonic components on various technology platforms, including fiber Bragg gratings, low-noise lasers, athermal and tunable packaging, photonic integration, and low-noise and high-speed electronics. The company was founded in 2007 and is headquartered in Aliso Viejo, California.

About MaxLinear

MaxLinear, Inc. provides communications systems-on-chip solutions worldwide. Its products integrate various portions of a high-speed communication system, including radio frequency, high-performance analog, mixed-signal, digital signal processing, security engines, data compression and networking layers, and power management. The company's products are used in various electronic devices, such as radio transceivers and modems for 4G/5G base-station and backhaul infrastructure; optical transceivers targeting hyperscale data centers; Wi-Fi and wireline routers for home networking; broadband modems compliant with data over cable service interface specifications, passive optical fiber standards, and digital subscriber line, as well as power management and interface products. It serves electronics distributors, module makers, original equipment manufacturers, and original design manufacturers through a direct sales force, third-party sales representatives, and a network of distributors. The company was incorporated in 2003 and is headquartered in Carlsbad, California.