Analyzing Canadian Solar (CSIQ) & Marvell Technology Group (MRVL)

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Canadian Solar (NASDAQ: MRVL) and Marvell Technology Group (NASDAQ:MRVL) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Earnings & Valuation

This table compares Canadian Solar and Marvell Technology Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Canadian Solar $3.39 billion 0.25 $99.57 million $1.04 14.09
Marvell Technology Group $2.41 billion 4.05 $520.83 million $1.04 18.70

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

Profitability

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

Net Margins Return on Equity Return on Assets
Canadian Solar 3.26% 12.44% 2.38%
Marvell Technology Group 22.24% 13.84% 12.09%

Institutional & Insider Ownership

36.0% of Canadian Solar shares are owned by institutional investors. 0.1% of Marvell Technology Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Canadian Solar has a beta of 2.4, indicating that its share price is 140% more volatile than the S&P 500. Comparatively, Marvell Technology Group has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Canadian Solar and Marvell Technology Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Canadian Solar 1 5 2 0 2.13
Marvell Technology Group 0 4 21 0 2.84

Canadian Solar currently has a consensus price target of $18.00, suggesting a potential upside of 22.87%. Marvell Technology Group has a consensus price target of $26.15, suggesting a potential upside of 34.46%. Given Marvell Technology Group’s stronger consensus rating and higher probable upside, analysts clearly believe Marvell Technology Group is more favorable than Canadian Solar.

Dividends

Marvell Technology Group pays an annual dividend of $0.24 per share and has a dividend yield of 1.2%. Canadian Solar does not pay a dividend. Marvell Technology Group pays out 23.1% of its earnings in the form of a dividend. Marvell Technology Group has raised its dividend for 2 consecutive years.

Summary

Marvell Technology Group beats Canadian Solar on 12 of the 16 factors compared between the two stocks.

About Canadian Solar

Canadian Solar Inc., together with its subsidiaries, designs, develops, manufactures, and sells solar ingots, wafers, cells, modules, and other solar power products primarily under the Canadian Solar brand name. The company operates through two segments, Module and System Solutions, and Energy. Its products include various solar modules that are used in residential, commercial, and industrial solar power generation systems. The company also provides specialty solar products consisting of Andes Solar Home System, an off-grid solar system that provides an economical source of electricity to homes and communities without access to grid; and Maple Solar System, a clean energy solution for families, as well as solar system kits, which are a ready-to-install packages that consist inverters, racking systems, and other accessories. In addition, it develops, builds, and sells solar power projects; performs engineering, procurement, and construction (EPC) work for solar power projects; and offers operation and maintenance services that include inspection, repair, and replacement of plant equipment, site management, and administrative support services. Further, the company generates and sells electricity through its solar plants with an aggregate capacity of approximately 1,211.1 megawatts. Canadian Solar Inc. offers its products to distributors, system integrators, project developers, and installers/EPC companies. The company has operations in North America, South America, Europe, Africa, the Middle East, Australia, and Asia. Canadian Solar Inc. was founded in 2001 and is based in Guelph, Canada.

About Marvell Technology Group

Marvell Technology Group Ltd. designs, develops, and markets analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits. It offers a range of storage products, including hard disk drive (HDD) and solid-state drive controllers, as well as HDD components, such as HDD preamps components; and develops software-enabled silicon solutions comprising serial advanced technology attachment port multipliers, bridges, serial attached SCSI, and non-volatile memory express redundant array of independent disks controllers and converged storage processors for enterprises, data centers, and cloud computing businesses. The company also provides networking products, which includes Ethernet solutions consisting of Ethernet switches, Ethernet physical-layer transceivers, and single-chip network interface devices; and embedded communication processors. In addition, it offers a portfolio of connectivity solutions, including Wi-Fi and Wi-Fi/Bluetooth integrated system-on-a-chip products, which are integrated into various end devices, including enterprise access points, home gateways, multimedia devices, gaming products, printers, automotive infotainment and telematics units, and smart industrial devices. Further, the company provides printer-specific standard products, as well as full-custom and application-specific integrated circuits; and application processors. It has operations in the United States, China, Malaysia, the Philippines, Thailand, Singapore, India, Israel, Japan, South Korea, Taiwan, and Vietnam. Marvell Technology Group Ltd. was founded in 1995 and is headquartered in Hamilton, Bermuda.

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