Emeren Group (NYSE:SOL) and MaxLinear (NYSE:MXL) Head-To-Head Survey

Emeren Group (NYSE:SOL) and MaxLinear (NYSE:MXL) are both small-cap oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Profitability

This table compares Emeren Group and MaxLinear’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Emeren Group	-12.70%	-0.88%	-0.69%
MaxLinear	-28.70%	-4.75%	-3.01%

Analyst Recommendations

This is a breakdown of current recommendations for Emeren Group and MaxLinear, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Emeren Group	2	0	2	1	2.40
MaxLinear	0	6	5	0	2.45

Emeren Group currently has a consensus price target of $5.38, indicating a potential upside of 175.64%. MaxLinear has a consensus price target of $25.70, indicating a potential upside of 39.45%. Given Emeren Group’s higher probable upside, analysts clearly believe Emeren Group is more favorable than MaxLinear.

Earnings and Valuation

This table compares Emeren Group and MaxLinear’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Emeren Group	$104.67 million	1.12	-$9.32 million	($0.26)	-7.50
MaxLinear	$693.26 million	2.21	-$73.15 million	($1.89)	-9.75

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

Insider and Institutional Ownership

44.1% of Emeren Group shares are owned by institutional investors. Comparatively, 90.8% of MaxLinear shares are owned by institutional investors. 18.0% of Emeren Group shares are owned by company insiders. Comparatively, 8.6% of MaxLinear shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

Emeren Group has a beta of 1.8, indicating that its stock price is 80% more volatile than the S&P 500. Comparatively, MaxLinear has a beta of 1.92, indicating that its stock price is 92% more volatile than the S&P 500.

Summary

Emeren Group beats MaxLinear on 9 of the 15 factors compared between the two stocks.

About Emeren Group

Emeren Group Ltd, through its subsidiaries, develops, builds, operates, and sells solar power projects. It owns and operates 3 gigawatt pipeline of projects and independent power producer assets. The company also develops community solar gardens; and sells project rights. In addition, it engages in engineering design; procurement of solar modules; balance-of-system components and other components; and construction contracting and management services. Further, the company generates and sells electricity. It operates in China, United States, UK, Spain, France, Poland, Italy, Hungary, and Internationally. The company was formerly known as ReneSola Ltd and changed its name to Emeren Group Ltd in January 2023. Emeren Group Ltd was founded in 2005 and is headquartered in Stamford, Connecticut.

About MaxLinear

MaxLinear, Inc. provides communications systems-on-chip solutions worldwide. Its products integrate various portions of a high-speed communication system, including radio frequency, high-performance analog, mixed-signal, digital signal processing, security engines, data compression and networking layers, and power management. The company's products are used in various electronic devices, such as radio transceivers and modems for 4G/5G base-station and backhaul infrastructure; optical transceivers targeting hyperscale data centers; Wi-Fi and wireline routers for home networking; broadband modems compliant with data over cable service interface specifications, passive optical fiber standards, and digital subscriber line, as well as power management and interface products. It serves electronics distributors, module makers, original equipment manufacturers, and original design manufacturers through a direct sales force, third-party sales representatives, and a network of distributors. The company was incorporated in 2003 and is headquartered in Carlsbad, California.