MACOM Technology Solutions (NASDAQ:MTSI) versus ASE Technology (NYSE:ASX) Head to Head Survey

MACOM Technology Solutions (NASDAQ:MTSI) and ASE Technology (NYSE:ASX) are both large-cap technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.

Risk and Volatility

MACOM Technology Solutions has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500. Comparatively, ASE Technology has a beta of 1.79, meaning that its stock price is 79% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MACOM Technology Solutions	$1.33 billion	12.14	$335.25 million	$4.30	49.07
ASE Technology	$786.80 billion	0.09	$1.28 billion	$1.07	29.60

ASE Technology has higher revenue and earnings than MACOM Technology Solutions. ASE 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 MACOM Technology Solutions and ASE Technology’s 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%
ASE Technology	9.77%	18.97%	7.40%

Institutional and Insider Ownership

76.1% of MACOM Technology Solutions shares are owned by institutional investors. Comparatively, 6.8% of ASE Technology shares are owned by institutional investors. 0.4% of MACOM Technology Solutions shares are owned by company insiders. Comparatively, 22.9% of ASE Technology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for MACOM Technology Solutions and ASE Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MACOM Technology Solutions	0	3	10	2	2.93
ASE Technology	0	0	1	1	3.50

MACOM Technology Solutions presently has a consensus target price of $316.25, suggesting a potential upside of 49.90%. Given MACOM Technology Solutions’ higher possible upside, analysts clearly believe MACOM Technology Solutions is more favorable than ASE Technology.

Summary

MACOM Technology Solutions beats ASE Technology on 11 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 ASE Technology

ASE Technology Holding Co., Ltd., together with its subsidiaries, provides semiconductors packaging and testing, and electronic manufacturing services in the United States, Taiwan, Asia, Europe, and internationally. It develops, constructs, sells, leases, and manages real estate properties; produces substrates; offers information software, equipment leasing, investment advisory, and warehousing management services; commercial complex, after-sales, and support services; manages parking lot services; processes and sells computer and communication peripherals, electronic components, telecommunications equipment, and motherboards; and imports and exports goods and technology. ASE Technology Holding Co., Ltd. was founded in 1984 and is based in Kaohsiung, Taiwan.