MACOM Technology Solutions (NASDAQ:MTSI – Get Free Report) and SkyWater Technology (NASDAQ:SKYT – Get Free Report) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.
Insider & Institutional Ownership
76.1% of MACOM Technology Solutions shares are held by institutional investors. Comparatively, 70.0% of SkyWater Technology shares are held by institutional investors. 16.3% of MACOM Technology Solutions shares are held by company insiders. Comparatively, 37.8% of SkyWater Technology shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and target prices for MACOM Technology Solutions and SkyWater Technology, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MACOM Technology Solutions | 0 | 2 | 10 | 1 | 2.92 |
| SkyWater Technology | 0 | 0 | 3 | 0 | 3.00 |
Profitability
This table compares MACOM Technology Solutions and SkyWater Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MACOM Technology Solutions | -13.05% | 12.42% | 7.84% |
| SkyWater Technology | -4.75% | -12.40% | -2.47% |
Risk and Volatility
MACOM Technology Solutions has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500. Comparatively, SkyWater Technology has a beta of 3.41, meaning that its stock price is 241% more volatile than the S&P 500.
Earnings & Valuation
This table compares MACOM Technology Solutions and SkyWater Technology”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MACOM Technology Solutions | $790.55 million | 10.56 | $76.86 million | ($1.44) | -77.97 |
| SkyWater Technology | $342.27 million | 1.06 | -$30.76 million | ($0.14) | -53.86 |
MACOM Technology Solutions has higher revenue and earnings than SkyWater Technology. MACOM Technology Solutions is trading at a lower price-to-earnings ratio than SkyWater Technology, indicating that it is currently the more affordable of the two stocks.
Summary
MACOM Technology Solutions beats SkyWater Technology on 8 of the 15 factors compared between the two stocks.
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.
About SkyWater Technology
SkyWater Technology, Inc., together with its subsidiaries, operates as a pure-play technology foundry that engages in the provision of semiconductor development, manufacturing, and packaging services in the United States. The company offers engineering and process development support services to co-create technologies with customers; and semiconductor manufacturing services for various silicon-based analog and mixed-signal, micro-electromechanical systems, and rad-hard integrated circuits. It serves customers operating in the computation, aerospace and defense, automotive, bio-health, consumer, and industrial sectors. The company was incorporated in 2016 and is headquartered in Bloomington, Minnesota.
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