Tokyo Electron (OTCMKTS:TOELY) versus Marvell Technology (NASDAQ:MRVL) Head-To-Head Review

Marvell Technology (NASDAQ:MRVL) and Tokyo Electron (OTCMKTS:TOELY) are both large-cap business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Marvell Technology	-18.30%	4.26%	2.99%
Tokyo Electron	21.32%	24.79%	17.58%

Earnings & Valuation

This table compares Marvell Technology and Tokyo Electron’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marvell Technology	$5.28 billion	12.50	-$933.40 million	($1.13)	-67.47
Tokyo Electron	$12.33 billion	6.73	$2.51 billion	$2.68	33.44

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

Risk and Volatility

Marvell Technology has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500. Comparatively, Tokyo Electron has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Marvell Technology and Tokyo Electron, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marvell Technology	0	1	21	0	2.95
Tokyo Electron	0	0	0	0	N/A

Marvell Technology currently has a consensus price target of $91.62, suggesting a potential upside of 20.17%. Given Marvell Technology’s higher possible upside, analysts plainly believe Marvell Technology is more favorable than Tokyo Electron.

Insider & Institutional Ownership

83.5% of Marvell Technology shares are held by institutional investors. Comparatively, 1.3% of Tokyo Electron shares are held by institutional investors. 0.3% of Marvell Technology shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Marvell Technology pays an annual dividend of $0.24 per share and has a dividend yield of 0.3%. Tokyo Electron pays an annual dividend of $1.14 per share and has a dividend yield of 1.3%. Marvell Technology pays out -21.2% of its earnings in the form of a dividend. Tokyo Electron pays out 42.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

Tokyo Electron beats Marvell Technology on 9 of the 15 factors compared between the two stocks.

About Marvell Technology

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 Tokyo Electron

Tokyo Electron Limited, together with its subsidiaries, develops, manufactures, and sells semiconductor and flat panel display (FPD) production equipment in Japan, Europe, North America, Taiwan, China, South Korea, Southeast Asia, and internationally. The company offers coaters/developers, etch systems, surface preparation systems, deposition systems, test systems, wafer bonders/debonders, wafer edge trimming, SiC epitaxial CVD systems, gas cluster ion beam system, and cleaning systems. It also provides plasma etch/ash systems for use in the manufacture of FPDs, as well as inkjet printing systems for manufacturing OLED displays. In addition, the company offers delivery, facility management, and non-life insurance services; sells semiconductor products, board computer products, software, and other electronic components; sells and supports network/storage/middleware related solutions; and develops, manufactures, and sells magnetic annealing systems. Tokyo Electron Limited was incorporated in 1951 and is headquartered in Tokyo, Japan.