Analyzing Onto Innovation (NYSE:ONTO) & Marvell Technology (NASDAQ:MRVL)

Onto Innovation (NYSE:ONTO – Get Free Report) and Marvell Technology (NASDAQ:MRVL – Get Free Report) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, valuation, risk and earnings.

Valuation & Earnings

This table compares Onto Innovation and Marvell Technology”s top-line revenue, earnings per share (EPS) and valuation.

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

Volatility & Risk

Onto Innovation has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500. Comparatively, Marvell Technology has a beta of 2.32, indicating that its share price is 132% more volatile than the S&P 500.

Insider & Institutional Ownership

98.3% of Onto Innovation shares are held by institutional investors. Comparatively, 83.5% of Marvell Technology shares are held by institutional investors. 0.5% of Onto Innovation 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, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Onto Innovation and Marvell Technology, as reported by MarketBeat.com.

Onto Innovation currently has a consensus target price of $380.00, suggesting a potential upside of 89.06%. Marvell Technology has a consensus target price of $327.36, suggesting a potential upside of 66.68%. Given Onto Innovation’s stronger consensus rating and higher probable upside, analysts plainly believe Onto Innovation is more favorable than Marvell Technology.

Profitability

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

Summary

Marvell Technology beats Onto Innovation on 10 of the 15 factors compared between the two stocks.

About Onto Innovation

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Onto Innovation Inc. engages in the design, development, manufacture, and support of process control tools that performs optical metrology. The company offers lithography systems and process control analytical software. It also offers process and yield management solutions, and device packaging and test facilities through standalone systems for optical metrology, macro-defect inspection, packaging lithography, and transparent and opaque thin film measurements. In addition, the company provides process control software portfolio that includes solutions for standalone tools, groups of tools, and enterprise-or factory-wide suites. Further, it engages in systems software, spare parts, and other services, as well as offers software licensing services. The company's products are used in semiconductor and advanced packaging device manufacturers; silicon wafer; light emitting diode; vertical-cavity surface-emitting laser; micro-electromechanical system; CMOS image sensor; power device; analog device; RF filter; data storage; and various industrial and scientific applications. Onto Innovation Inc. was founded in 1940 and is headquartered in Wilmington, Massachusetts.

About Marvell Technology

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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.