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How Did Marvell Technology Group Compare to Its Peers?

Gabriel Kane

What Investors Must Know about Marvell Technology in Fiscal 3Q16

(Continued from Prior Part)

ETFs that invest in Marvell Technology Group

The SPDR S&P Semiconductor ETF (XSD) invests 2.1% of its holdings in Marvell Technology. The ETF tracks an equal-weighted index of semiconductor stocks. Also, the PowerShares Dynamic Semiconductors Portfolio ETF (PSI) invests 1.9% of its holdings in Marvell Technology. The ETF uses a quantitative model to select and weight semiconductor companies.

Next, the First Trust Technology AlphaDEX ETF (FXL) invests 1.8% of its holdings in Marvell Technology. The ETF tracks a tiered equal-weighted index of US technology firms.

And finally, the First Trust NASDAQ CEA Smartphone Index Fund (FONE) invests 1.4% of its holdings in Marvell Technology. The ETF tracks a tiered equal-weighted index of companies classified as smartphone companies by the Consumer Electronics Association.

Comparing Marvell Technology Group and its ETFs

Now let’s compare Marvell Technology with the ETFs that invest in it:

  • The year-to-date price movements of Marvell Technology, XSD, PSI, FONE, and FXL are -36.4%, 14.5%, 5.8%, -2.7%, and 0.19%, respectively.
  • The PBV ratios of Marvell Technology, XSD, PSI, FONE, and FXL are 0.91x, 2.7x, 2.6x, 1.9x, and 3.0x, respectively.

As a result, ETFs are way ahead of Marvell Technology Group based on price movement and PBV.

Marvell Technology Group and its peers

In this article, we’ll compare Marvell Technology with its peers:

  • The PBV (price-to-book value) ratios of Marvell Technology (MRVL), Texas Instruments (TXN), STMicroelectronics (STM), and Cavium (CAVM) are 0.91x, 6.0x, 1.3x, and 11.0x, respectively, as of December 7, 2015.
  • The PS (price-to-sales) ratios of Marvell Technology, Texas Instruments, STMicroelectronics, and Cavium are 1.5x, 4.5x, 0.92x, and 9.1x, respectively.

Thus, peers have outperformed Marvell Technology Group based on PBV and PS.

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