Comparing MACOM Technology Solutions (NASDAQ:MTSI) & ASE Technology (NYSE:ASX)

ASE Technology (NYSE:ASX) and MACOM Technology Solutions (NASDAQ:MTSI) are both large-cap technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.

Valuation and Earnings

This table compares ASE Technology and MACOM Technology Solutions”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ASE Technology	$20.73 billion	3.42	$1.28 billion	$1.07	29.60
MACOM Technology Solutions	$967.26 million	16.66	-$54.21 million	$4.30	49.07

ASE Technology has higher revenue and earnings than MACOM Technology Solutions. ASE Technology is trading at a lower price-to-earnings ratio than MACOM Technology Solutions, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares ASE Technology and MACOM Technology Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ASE Technology	9.77%	18.97%	7.40%
MACOM Technology Solutions	20.70%	17.82%	12.01%

Analyst Recommendations

This is a summary of current ratings and target prices for ASE Technology and MACOM Technology Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ASE Technology	0	0	1	1	3.50
MACOM Technology Solutions	0	3	10	2	2.93

MACOM Technology Solutions has a consensus price target of $321.67, suggesting a potential upside of 52.46%. Given MACOM Technology Solutions’ higher possible upside, analysts plainly believe MACOM Technology Solutions is more favorable than ASE Technology.

Institutional & Insider Ownership

6.8% of ASE Technology shares are owned by institutional investors. Comparatively, 76.1% of MACOM Technology Solutions shares are owned by institutional investors. 22.9% of ASE Technology shares are owned by company insiders. Comparatively, 0.4% of MACOM Technology Solutions shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

ASE Technology has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500. Comparatively, MACOM Technology Solutions has a beta of 1.82, indicating that its share price is 82% more volatile than the S&P 500.

Summary

MACOM Technology Solutions beats ASE Technology on 10 of the 15 factors compared between the two stocks.

About ASE Technology

ASE Technology Holding Co., Ltd., together with its subsidiaries, provides semiconductors packaging and testing, and electronic manufacturing services in the United States, Taiwan, Asia, Europe, and internationally. It develops, constructs, sells, leases, and manages real estate properties; produces substrates; offers information software, equipment leasing, investment advisory, and warehousing management services; commercial complex, after-sales, and support services; manages parking lot services; processes and sells computer and communication peripherals, electronic components, telecommunications equipment, and motherboards; and imports and exports goods and technology. ASE Technology Holding Co., Ltd. was founded in 1984 and is based in Kaohsiung, Taiwan.

About MACOM Technology Solutions

MACOM Technology Solutions Holdings, Inc., together with its subsidiaries, designs and manufactures analog semiconductor solutions for use in wireless and wireline applications across the radio frequency (RF), microwave, millimeter wave, and lightwave spectrum in the United States, China, Australia, Japan, Malaysia, Singapore, South Korea, Taiwan, Thailand, and internationally. The company offers a portfolio of standard and custom devices, including integrated circuits, multi-chip modules, diodes, amplifiers, switches and switch limiters, passive and active components, and subsystems. Its semiconductor products are electronic components that are incorporated in electronic systems, such as wireless base stations, high-capacity optical networks, radar, and medical systems and test and measurement applications. The company serves various markets comprising telecommunication that includes carrier infrastructure, which comprise long-haul/metro, 5G, and fiber-to-the-X/passive optical network; industrial and defense, including military and commercial radar, RF jammers, electronic countermeasures, and communication data links, as well as multi-market applications, such as industrial, medical, test and measurement, and scientific applications; and data centers. It sells its products through direct sales force, applications engineering staff, independent sales representatives, resellers, and distributors. The company was founded in 1950 and is headquartered in Lowell, Massachusetts.