|MRVL just reported their Q2. I want to compare MRVL's financials and stock valuation as it helps investors understand how undervalued SIMO is, or perhaps over valued MRVL is.....|
MRVL used to be the only maker of client SSD controllers for PCs. SIMO entered the market in about 2015, and about two years ago MRVL decided to exit the client SSD controller market because they couldn't make any money at it competing with SIMO.
In Q2 MRVL's sales were up 48% year over year. SIMO's Q2 sales were up 62% year over year, all organic.
MRVL's EPS run rate is about $1.35, giving them a 45x PE off a ~$62 share price.
SIMO's EPS run rate is $6.00, giving them a 12x PE off a $72 share price.
MRVL has $560m cash and $5.6b debt, $1 billion of which is short term debt due this year.
SIMO has $412m cash and no debt
MRVL is guiding Q3 revenues to be up about 7% sequentially. SIMO guided Q3 revenues to be up about 10% sequentially.
So, SIMO is growing faster than MRVL, and trades at a PE about 1/4th of MRVL's PE.