Analyzing Rohm (OTCMKTS:ROHCY) and Marvell Technology (NASDAQ:MRVL)

Marvell Technology (NASDAQ:MRVL) and Rohm (OTCMKTS:ROHCY) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.

Dividends

Marvell Technology pays an annual dividend of $0.24 per share and has a dividend yield of 0.3%. Rohm pays an annual dividend of $0.22 per share and has a dividend yield of 1.3%. Marvell Technology pays out 8.4% of its earnings in the form of a dividend. Rohm pays out -34.9% 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. Rohm is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Marvell Technology	31.75%	13.15%	8.65%
Rohm	-7.27%	-1.07%	-0.66%

Earnings & Valuation

This table compares Marvell Technology and Rohm”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marvell Technology	$5.77 billion	12.01	-$885.00 million	$2.85	27.89
Rohm	$2.95 billion	2.25	-$330.42 million	($0.63)	-26.03

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

Risk and Volatility

Marvell Technology has a beta of 1.97, meaning that its share price is 97% more volatile than the S&P 500. Comparatively, Rohm has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Marvell Technology and Rohm, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marvell Technology	0	11	22	2	2.74
Rohm	0	2	0	0	2.00

Marvell Technology currently has a consensus price target of $115.16, suggesting a potential upside of 44.89%. Given Marvell Technology’s stronger consensus rating and higher probable upside, research analysts plainly believe Marvell Technology is more favorable than Rohm.

Insider & Institutional Ownership

83.5% of Marvell Technology shares are owned by institutional investors. 0.2% of Marvell Technology shares are owned 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.

Summary

Marvell Technology beats Rohm on 14 of the 17 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 Rohm

ROHM Co., Ltd. manufactures and sells electronic components worldwide. The company operates through three segments: LSI, Semiconductor Devices, and Modules. It provides ICs comprising memory, amplifiers and linear, power management, motor/actuator drivers, resistors, clocks and timers, switches and multiplexers, logic, data converters, sensors and MEMS, display drivers, interfaces, wireless LSIs, audio and video products, speech synthesis LSI, and microcontrollers. The company also offers discrete semiconductor products, such as MOSFETs, bipolar transistors, and diodes; power devices, including power transistors and diodes, SiC power devices, IGBT, and IPM; modules, including optical modules, wireless communication modules, wireless charger modules, and print heads; and opto devices comprising LEDs, LED displays, laser diodes, and optical sensors, as well as foundry services, including thin-film piezoelectric MEMS, wafers, and WL-CSP. Its products are used in industry, automotive, consumer electronics, and telecommunications applications. The company was incorporated in 1940 and is headquartered in Kyoto, Japan.