Critical Review: On Track Innovations (OTCMKTS:OTIVF) and MaxLinear (NASDAQ:MXL)

On Track Innovations (OTCMKTS:OTIVF) and MaxLinear (NASDAQ:MXL) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.

Valuation & Earnings

This table compares On Track Innovations and MaxLinear”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
On Track Innovations	$14.88 million	0.00	-$11.66 million	N/A	N/A
MaxLinear	$693.26 million	2.53	-$73.15 million	($2.72)	-7.64

On Track Innovations has higher earnings, but lower revenue than MaxLinear.

Risk & Volatility

On Track Innovations has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, MaxLinear has a beta of 1.87, indicating that its share price is 87% more volatile than the S&P 500.

Insider & Institutional Ownership

33.6% of On Track Innovations shares are held by institutional investors. Comparatively, 90.8% of MaxLinear shares are held by institutional investors. 8.0% of On Track Innovations shares are held by insiders. Comparatively, 8.6% of MaxLinear shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares On Track Innovations and MaxLinear’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
On Track Innovations	-63.06%	-1,110.80%	-62.59%
MaxLinear	-57.37%	-19.22%	-12.07%

Analyst Recommendations

This is a breakdown of current ratings and price targets for On Track Innovations and MaxLinear, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
On Track Innovations	0	0	0	0	0.00
MaxLinear	0	3	4	0	2.57

MaxLinear has a consensus price target of $23.14, indicating a potential upside of 11.42%. Given MaxLinear’s stronger consensus rating and higher possible upside, analysts plainly believe MaxLinear is more favorable than On Track Innovations.

Summary

MaxLinear beats On Track Innovations on 10 of the 11 factors compared between the two stocks.

About On Track Innovations

On Track Innovations Ltd., together with its subsidiaries, designs, develops, and markets cashless payment solutions worldwide. It operates in two segments, Retail and Petroleum. The company's product portfolio includes readers, controllers and terminals, management software, payment services, and Payment System as a Service (PSaaS). It offers OtiMetry System that incorporates telemetry, sales, and operations into solution with cloud control, and real-time online management and alerts; TRIO-IQ, a telemetry gateway and EMV payment reader; TRIO, a payment device for installation in kiosks and vending machines; UNO-8 and UNO-PLUS contactless readers for unattended retail environments with self-service payment stations, including ATMs, toll roads, access control, and mass transit validators; and controllers and gateways comprises OTI TeleBox, a machine-to-machine controller that enables the communication between machines, and GoBox, a machine-to-machine controller that communicates between machines, cashless readers, and remote servers. The company also provides a terminal management system, which is a cloud-based system that provides real-time control and insights of each machine enabling operators to remotely manage their terminal's fleet; and cloud based vending management system and vending BI. In addition, it offers payment services, including payment service API, an application programming interface; close loop payment that supports close-loop payment cards; and APIs for integration with mobile payment solutions, as well as original equipment manufacturer (OEM) payment solutions. The company's readers are certified by various card associations and support Apple Pay, Google Pay, Samsung Pay, MIFARE, FeliCa, and others. The company was formerly known as De-Bug Innovations Ltd. and changed its name to On Track Innovations Ltd. in July 1991. On Track Innovations Ltd. was incorporated in 1990 and is headquartered in Yokneam Illit, Israel.

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.