MACOM Technology Solutions (NASDAQ:MTSI) vs. Rohm (OTCMKTS:ROHCY) Head-To-Head Review

Rohm (OTCMKTS:ROHCY) and MACOM Technology Solutions (NASDAQ:MTSI) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rohm	$3.20 billion	2.41	-$1.05 billion	($2.59)	-7.72
MACOM Technology Solutions	$1.33 billion	13.78	$335.25 million	$4.30	55.73

MACOM Technology Solutions has lower revenue, but higher earnings than Rohm. Rohm 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.

Analyst Recommendations

This is a summary of current recommendations and price targets for Rohm and MACOM Technology Solutions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rohm	0	1	1	0	2.50
MACOM Technology Solutions	0	3	10	2	2.93

MACOM Technology Solutions has a consensus price target of $316.25, suggesting a potential upside of 31.97%. Given MACOM Technology Solutions’ stronger consensus rating and higher possible upside, analysts clearly believe MACOM Technology Solutions is more favorable than Rohm.

Institutional & Insider Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rohm	-29.79%	4.04%	2.47%
MACOM Technology Solutions	25.25%	22.46%	15.71%

Risk and Volatility

Rohm has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500. Comparatively, MACOM Technology Solutions has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500.

Summary

MACOM Technology Solutions beats Rohm on 14 of the 15 factors compared between the two stocks.

About Rohm

ROHM Co., Ltd. is a Japan-based semiconductor and electronic components manufacturer headquartered in Kyoto. The company develops and supplies integrated circuits, semiconductor devices, modules and passive components, including resistors. Its products are used in automotive systems, industrial equipment, consumer electronics and communications devices. ROHM serves customers in Japan and international markets through a global network of operations and sales offices. Founded in 1958 as Toyo Electronics Industry, the company initially focused on resistors and adopted the name ROHM in 1981.

About MACOM Technology Solutions

MACOM Technology Solutions designs and supplies semiconductor products for applications that use radio frequency, microwave, millimeter-wave and optical signals. Its products include amplifiers, switches, diodes, mixers, attenuators and other components used in communications and electronic systems. The company serves customers in markets including telecommunications, data centers, aerospace and defense, and industrial applications. Its components are used in equipment such as wireless infrastructure, high-speed optical networks, radar and test systems.