Critical Analysis: MACOM Technology Solutions (MTSI) versus The Competition

MACOM Technology Solutions (NASDAQ:MTSI) is one of 221 public companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it weigh in compared to its rivals? We will compare MACOM Technology Solutions to similar businesses based on the strength of its valuation, profitability, analyst recommendations, institutional ownership, dividends, risk and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MACOM Technology Solutions	20.70%	17.82%	12.01%
MACOM Technology Solutions Competitors	-1,280.74%	-126.55%	-4.15%

Analyst Ratings

This is a summary of recent ratings and recommmendations for MACOM Technology Solutions and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MACOM Technology Solutions	0	3	11	2	2.94
MACOM Technology Solutions Competitors	3487	12290	25663	989	2.57

MACOM Technology Solutions presently has a consensus target price of $338.08, indicating a potential upside of 52.16%. As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 43.42%. Given MACOM Technology Solutions’ stronger consensus rating and higher probable upside, equities research analysts plainly believe MACOM Technology Solutions is more favorable than its rivals.

Earnings & Valuation

This table compares MACOM Technology Solutions and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
MACOM Technology Solutions	$967.26 million	-$54.21 million	71.44
MACOM Technology Solutions Competitors	$9.76 billion	$2.48 billion	8.17

MACOM Technology Solutions’ rivals have higher revenue and earnings than MACOM Technology Solutions. MACOM Technology Solutions is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

76.1% of MACOM Technology Solutions shares are owned by institutional investors. Comparatively, 54.8% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by institutional investors. 0.4% of MACOM Technology Solutions shares are owned by insiders. Comparatively, 11.5% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

MACOM Technology Solutions has a beta of 1.77, indicating that its share price is 77% more volatile than the S&P 500. Comparatively, MACOM Technology Solutions’ rivals have a beta of 3.09, indicating that their average share price is 209% more volatile than the S&P 500.

Summary

MACOM Technology Solutions beats its rivals on 9 of the 13 factors compared.

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.