Reviewing MACOM Technology Solutions (MTSI) & Its Peers

MACOM Technology Solutions (NASDAQ:MTSI) is one of 221 publicly-traded companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it compare to its rivals? We will compare MACOM Technology Solutions to related businesses based on the strength of its institutional ownership, analyst recommendations, profitability, dividends, valuation, 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	25.25%	22.46%	15.71%
MACOM Technology Solutions Competitors	-1,267.00%	-126.31%	-3.96%

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
MACOM Technology Solutions	$1.33 billion	$335.25 million	52.02
MACOM Technology Solutions Competitors	$1,259.15 billion	$2.53 billion	9.36

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.

Volatility & Risk

MACOM Technology Solutions has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500. Comparatively, MACOM Technology Solutions’ rivals have a beta of 2.80, meaning that their average stock price is 180% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for MACOM Technology Solutions and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MACOM Technology Solutions	0	3	10	2	2.93
MACOM Technology Solutions Competitors	3505	12360	25792	999	2.57

MACOM Technology Solutions currently has a consensus price target of $316.25, indicating a potential upside of 41.38%. As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 46.52%. Given MACOM Technology Solutions’ rivals higher possible upside, analysts clearly believe MACOM Technology Solutions has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

76.1% of MACOM Technology Solutions shares are owned by institutional investors. Comparatively, 54.7% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by institutional investors. 0.4% of MACOM Technology Solutions shares are owned by company insiders. Comparatively, 11.9% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

MACOM Technology Solutions beats its rivals on 8 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.