Contrasting Marvell Technology (NASDAQ:MRVL) and Veeco Instruments (NASDAQ:VECO)

by · The Markets Daily

Veeco Instruments (NASDAQ:VECOGet Free Report) and Marvell Technology (NASDAQ:MRVLGet Free Report) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Profitability

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

Net MarginsReturn on EquityReturn on Assets
Veeco Instruments3.40%3.52%2.32%
Marvell Technology27.93%13.57%8.98%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Veeco Instruments and Marvell Technology, as reported by MarketBeat.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Veeco Instruments05102.17
Marvell Technology072932.90

Veeco Instruments currently has a consensus price target of $49.33, indicating a potential upside of 10.05%. Marvell Technology has a consensus price target of $270.47, indicating a potential upside of 14.56%. Given Marvell Technology’s stronger consensus rating and higher probable upside, analysts clearly believe Marvell Technology is more favorable than Veeco Instruments.

Valuation & Earnings

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

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Veeco Instruments$664.29 million4.13$35.39 million$0.36124.53
Marvell Technology$8.19 billion25.26$2.67 billion$3.0377.92

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

Institutional & Insider Ownership

98.5% of Veeco Instruments shares are held by institutional investors. Comparatively, 83.5% of Marvell Technology shares are held by institutional investors. 2.7% of Veeco Instruments shares are held by company insiders. Comparatively, 0.1% of Marvell Technology shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Veeco Instruments has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500. Comparatively, Marvell Technology has a beta of 2.25, meaning that its stock price is 125% more volatile than the S&P 500.

Summary

Marvell Technology beats Veeco Instruments on 12 of the 15 factors compared between the two stocks.

About Veeco Instruments

(Get Free Report)

Veeco Instruments Inc., together with its subsidiaries, develops, manufactures, sells, and supports semiconductor and thin film process equipment primarily to make electronic devices in the United States, Europe, the Middle East, and Africa, China, Rest of the Asia-Pacific, and internationally. The company offers laser annealing, ion beam deposition and etch, metal organic chemical vapor deposition, single wafer wet processing and surface preparation, molecular beam epitaxy, advanced packaging lithography, atomic layer deposition, and other deposition systems. Its process equipment systems are used in the production of a range of microelectronic components, including logic, dynamic random-access memory, photonics devices, power electronics, radio frequency filters and amplifiers, magnetic heads for hard disk drives, and other semiconductor devices. In addition, the company markets and sells its products to integrated device manufacturers and foundries; outsourced semiconductor assembly and test companies; and hard disk drive and photonics manufacturers, as well as research centers and universities. Veeco Instruments Inc. was founded in 1945 and is headquartered in Plainview, New York.

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.