MACOM Technology Solutions Holdings (MTSI) & Maxim Integrated Products (MXIM) Financial Comparison

MACOM Technology Solutions Holdings (NASDAQ: MTSI) and Maxim Integrated Products (NASDAQ:MXIM) are both mid-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitabiliy, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.

Dividends

Maxim Integrated Products pays an annual dividend of $1.32 per share and has a dividend yield of 2.9%. MACOM Technology Solutions Holdings does not pay a dividend. Maxim Integrated Products pays out 75.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MACOM Technology Solutions Holdings has raised its dividend for 7 consecutive years.

Institutional & Insider Ownership

72.6% of MACOM Technology Solutions Holdings shares are held by institutional investors. Comparatively, 89.5% of Maxim Integrated Products shares are held by institutional investors. 42.3% of MACOM Technology Solutions Holdings shares are held by insiders. Comparatively, 1.3% of Maxim Integrated Products shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares MACOM Technology Solutions Holdings and Maxim Integrated Products’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
MACOM Technology Solutions Holdings $632.82 million 5.63 $121.15 million ($1.94) -28.79
Maxim Integrated Products $2.26 billion 5.78 $813.89 million $1.74 26.57

Maxim Integrated Products has higher revenue and earnings than MACOM Technology Solutions Holdings. MACOM Technology Solutions Holdings is trading at a lower price-to-earnings ratio than Maxim Integrated Products, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for MACOM Technology Solutions Holdings and Maxim Integrated Products, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MACOM Technology Solutions Holdings 0 2 5 0 2.71
Maxim Integrated Products 0 9 9 0 2.50

MACOM Technology Solutions Holdings presently has a consensus target price of $54.83, suggesting a potential downside of 1.84%. Maxim Integrated Products has a consensus target price of $46.94, suggesting a potential upside of 1.52%. Given Maxim Integrated Products’ higher possible upside, analysts clearly believe Maxim Integrated Products is more favorable than MACOM Technology Solutions Holdings.

Profitability

This table compares MACOM Technology Solutions Holdings and Maxim Integrated Products’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MACOM Technology Solutions Holdings -16.35% 17.86% 7.99%
Maxim Integrated Products 22.16% 26.73% 13.94%

Volatility & Risk

MACOM Technology Solutions Holdings has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500. Comparatively, Maxim Integrated Products has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Summary

Maxim Integrated Products beats MACOM Technology Solutions Holdings on 11 of the 17 factors compared between the two stocks.

MACOM Technology Solutions Holdings 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.

Maxim Integrated Products Company Profile

Maxim Integrated Products, Inc. is engaged in designing, developing, manufacturing and marketing a range of linear and mixed-signal integrated circuits, referred to as analog circuits. The Company also provides a range of high-frequency process technologies and capabilities for use in custom designs. The Company caters to automotive, communications and data center, computing, consumer and industrial markets. It offers a range of products, such as switching regulators, battery management, isolated power, charge pumps, linear regulators, light emitting diode (LED) drivers, motor driver integrated circuits (ICs), monitors and sequencers, transceivers, controllers and expanders, level translators, signal line protection ICs, broadband switches, powerline communications, real-time clocks, embedded security, microcontrollers, 1-Wire, iButton, data loggers, clock generation and distribution, memory products, optical, signal integrity, high-speed signaling, and display power and control.

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