Analyzing MACOM Technology Solutions (MTSI) & Qorvo (QRVO)
MACOM Technology Solutions (NASDAQ: MTSI) and Qorvo (NASDAQ:QRVO) are both mid-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.
Insider and Institutional Ownership
88.2% of MACOM Technology Solutions shares are owned by institutional investors. Comparatively, 96.7% of Qorvo shares are owned by institutional investors. 57.1% of MACOM Technology Solutions shares are owned by insiders. Comparatively, 0.9% of Qorvo shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares MACOM Technology Solutions and Qorvo’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|MACOM Technology Solutions||$698.77 million||2.97||-$169.49 million||($2.97)||-10.87|
|Qorvo||$3.03 billion||3.11||-$16.55 million||($0.16)||-463.81|
Qorvo has higher revenue and earnings than MACOM Technology Solutions. Qorvo 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.
Risk & Volatility
MACOM Technology Solutions has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, Qorvo has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for MACOM Technology Solutions and Qorvo, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MACOM Technology Solutions||1||3||5||0||2.44|
MACOM Technology Solutions currently has a consensus price target of $44.14, suggesting a potential upside of 36.79%. Qorvo has a consensus price target of $77.44, suggesting a potential upside of 4.36%. Given MACOM Technology Solutions’ stronger consensus rating and higher possible upside, equities research analysts plainly believe MACOM Technology Solutions is more favorable than Qorvo.
This table compares MACOM Technology Solutions and Qorvo’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MACOM Technology Solutions||-24.26%||15.05%||7.04%|
Qorvo beats MACOM Technology Solutions on 8 of the 14 factors compared between the two stocks.
MACOM Technology Solutions Company Profile
MACOM Technology Solutions Holdings, Inc. is a provider of high-performance analog semiconductor solutions that enable Internet applications, the cloud-connected applications economy, and the networked battlefield across the radio frequency (RF), microwave, millimeterwave and photonic spectrum. It has multiple design centers, silicon, gallium arsenide and indium phosphide fabrication, manufacturing, assembly and test, and operational facilities throughout North America, Europe, Asia and Australia. It also offers foundry services. It offered a portfolio of over 4,500 standard and custom devices, which include integrated circuits, multi-chip modules, power pallets and transistors, diodes, amplifiers, switches and switch limiters, passive and active components and complete subsystems, across more than 40 product lines serving three primary markets, as of September 30, 2016. The Company’s products are RF Power Products, Optoelectronics and Photonic Solutions, among others.
Qorvo Company Profile
Qorvo, Inc. is a provider of technologies and radio frequency (RF) solutions for mobile, infrastructure and defense and aerospace applications. The Company designs, develops, manufactures and markets its products to the United States and international original equipment manufacturers (OEMs) and original design manufacturers (ODMs). Its segments include Mobile Products (MP) and Infrastructure and Defense Products (IDP). The MP segment is a supplier of radio frequency (RF) solutions that perform various functions in the cellular radio front end section of smartphones and other cellular devices. The IDP segment is a supplier of RF solutions that support various global applications, including ubiquitous high-speed network connectivity to the cloud, data center communications, Internet connectivity throughout the home and workplace, and upgraded military capabilities across the globe. It operates design, sales and manufacturing facilities located throughout Asia, Europe and North America.
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