Reviewing MACOM Technology Solutions Holdings (MTSI) & ASML Holding N.V. (ASML)
MACOM Technology Solutions Holdings (NASDAQ: MTSI) and ASML Holding N.V. (NASDAQ:ASML) are both mid-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, earnings, valuation, profitability and analyst recommendations.
Institutional & Insider Ownership
75.1% of MACOM Technology Solutions Holdings shares are held by institutional investors. Comparatively, 16.7% of ASML Holding N.V. shares are held by institutional investors. 42.3% of MACOM Technology Solutions Holdings shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares MACOM Technology Solutions Holdings and ASML Holding N.V.’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|MACOM Technology Solutions Holdings||$685.09 million||3.72||$136.09 million||($2.50)||-15.87|
|ASML Holding N.V.||N/A||N/A||N/A||$4.57||33.32|
MACOM Technology Solutions Holdings has higher revenue and earnings than ASML Holding N.V.. MACOM Technology Solutions Holdings is trading at a lower price-to-earnings ratio than ASML Holding N.V., indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for MACOM Technology Solutions Holdings and ASML Holding N.V., as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MACOM Technology Solutions Holdings||0||1||4||0||2.80|
|ASML Holding N.V.||0||7||10||0||2.59|
MACOM Technology Solutions Holdings currently has a consensus target price of $55.60, indicating a potential upside of 40.16%. ASML Holding N.V. has a consensus target price of $160.67, indicating a potential upside of 5.52%. Given MACOM Technology Solutions Holdings’ stronger consensus rating and higher probable upside, equities research analysts clearly believe MACOM Technology Solutions Holdings is more favorable than ASML Holding N.V..
This table compares MACOM Technology Solutions Holdings and ASML Holding N.V.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MACOM Technology Solutions Holdings||-22.43%||17.21%||7.73%|
|ASML Holding N.V.||23.69%||18.48%||10.71%|
ASML Holding N.V. pays an annual dividend of $1.11 per share and has a dividend yield of 0.7%. MACOM Technology Solutions Holdings does not pay a dividend. ASML Holding N.V. pays out 24.3% of its earnings in the form of a dividend.
Risk & Volatility
MACOM Technology Solutions Holdings has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, ASML Holding N.V. has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500.
MACOM Technology Solutions Holdings beats ASML Holding N.V. on 7 of the 13 factors compared between the two stocks.
About MACOM Technology Solutions Holdings
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.
About ASML Holding N.V.
ASML Holding N.V. is a holding company. The Company is a manufacturer of chip-making equipment. The Company is engaged in the development, production, marketing, selling and servicing of semiconductor equipment systems, consisting of lithography systems. The Company’s products include systems, and installed base products and services. The Company’s principal operations are in the Netherlands, the United States and Asia. The Company offers TWINSCAN systems, equipped with lithography system with a mercury lamp as light source (i-line), Krypton Fluoride (KrF) and Argon Fluoride (ArF) light sources for 300 millimeter processing wafers for manufacturing environments for which imaging at a small resolution is required. TWINSCAN systems also include immersion lithography systems (TWINSCAN immersion systems). The Company also offers NXE systems, which are equipped with extreme ultraviolet (EUV) light source technology. The Company offers YieldStar, a wafer metrology system.
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