Microchip Technology (NASDAQ:MCHP – Get Free Report) and MACOM Technology Solutions (NASDAQ:MTSI – Get Free Report) are both large-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Analyst Ratings
This is a breakdown of recent recommendations for Microchip Technology and MACOM Technology Solutions, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Microchip Technology | 0 | 6 | 13 | 1 | 2.75 |
MACOM Technology Solutions | 0 | 2 | 8 | 1 | 2.91 |
Microchip Technology currently has a consensus price target of $70.15, suggesting a potential downside of 0.89%. MACOM Technology Solutions has a consensus price target of $133.50, suggesting a potential downside of 6.14%. Given Microchip Technology’s higher possible upside, equities research analysts plainly believe Microchip Technology is more favorable than MACOM Technology Solutions.
Risk and Volatility
Institutional and Insider Ownership
91.5% of Microchip Technology shares are held by institutional investors. Comparatively, 76.1% of MACOM Technology Solutions shares are held by institutional investors. 2.1% of Microchip Technology shares are held by company insiders. Comparatively, 16.3% of MACOM Technology Solutions shares are held 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.
Earnings & Valuation
This table compares Microchip Technology and MACOM Technology Solutions”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Microchip Technology | $4.40 billion | 8.67 | -$500,000.00 | ($0.01) | -7,078.00 |
MACOM Technology Solutions | $729.58 million | 14.49 | $76.86 million | ($1.22) | -116.58 |
MACOM Technology Solutions has lower revenue, but higher earnings than Microchip Technology. Microchip Technology 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.
Profitability
This table compares Microchip Technology and MACOM Technology Solutions’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Microchip Technology | -0.01% | 8.55% | 3.53% |
MACOM Technology Solutions | -10.24% | 13.32% | 8.41% |
About Microchip Technology
Microchip Technology Incorporated engages in the development, manufacture, and sale of smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications. It also provides analog, interface, mixed signal, and timing products comprising power management, linear, mixed-signal, high-voltage, thermal management, discrete diodes, and metal oxide semiconductor field effect transistors (MOSFETS), radio frequency (RF), drivers, safety, security, timing, USB, Ethernet, wireless, and other interface products; field-programmable gate array (FPGA) products; and application development tools that enable system designers to program microcontroller, FPGA, and microprocessor products for specific applications. In addition, the company offers serial electrically erasable programmable read-only memory, serial flash memories, parallel flash memories, serial static random access memories, and serial electrically erasable random access memories for the production of very small footprint devices; and licenses its SuperFlash embedded flash and non-volatile memory technologies to foundries, integrated device manufacturers, and design partners for use in the manufacture of microcontroller products, gate array, RF, analog, and neuromorphic compute products that require embedded non-volatile memory, as well as provides engineering services. Further, it offers wafer foundry and assembly, and test subcontracting manufacturing services; and timing systems products, application specific integrated circuits, and aerospace products. The company was incorporated in 1989 and is headquartered in Chandler, Arizona.
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.
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