Marvell Technology Group Ltd. (MRVL): More Bullish Sentiment for This Chipmaker in 2013

The joint-venture losses have been a major drag on STMicroelectronics N.V. (ADR) (NYSE:STM)’ consolidated net income. The company expects to incur around $350 million to 450 million in cash cost from the joint-venture shutdown and the business restructuring. Indeed, STMicroelectronics seems to be a good turnaround play for investors on the joint venture shutdown.

Income investors might like STMicroelectronics N.V. (ADR) (NYSE:STM) the most with its juicy dividend yield of 3.60%. Marvell ranked second, offering shareholders dividends with a yield of 2.10%. LSI does not pay investors any dividend. Marvell is the most profitable company with the highest operating margin of 9.54%, while the operating margins of LSI stayed at 7.64%. STMicroelecronics had a negative operating margin of 7.15%.

My Foolish take

Among the three, I still like Marvell Technology Group Ltd. (NASDAQ:MRVL) the most with its decent dividend yield, the highest operating margin, and a reasonable valuation. With the earnings results that beat estimates, and the outlook upbeat, Marvell could continue to march higher in 2013.

The article More Bullish Sentiment for This Chipmaker in 2013 originally appeared on Fool.com and is written by Anh Hoang.

Anh HOANG long 2014 $10 calls on Marvell Technology. The Motley Fool has no position in any of the stocks mentioned. Anh is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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