Camtek (NASDAQ: CAMT) and MACOM Technology Solutions Holdings (NASDAQ:MTSI) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, analyst recommendations and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
Camtek 2.56% 15.32% 10.10%
MACOM Technology Solutions Holdings -22.43% 17.21% 7.73%

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Camtek 0 1 1 0 2.50
MACOM Technology Solutions Holdings 0 2 4 0 2.67

Camtek currently has a consensus target price of $7.00, suggesting a potential upside of 37.80%. MACOM Technology Solutions Holdings has a consensus target price of $55.60, suggesting a potential upside of 22.57%. Given Camtek’s higher possible upside, equities research analysts clearly believe Camtek is more favorable than MACOM Technology Solutions Holdings.

Earnings and Valuation

This table compares Camtek and MACOM Technology Solutions Holdings’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Camtek $116.68 million 1.54 $13.85 million $0.08 63.50
MACOM Technology Solutions Holdings $685.09 million 4.25 $136.09 million ($2.50) -18.14

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

Institutional and Insider Ownership

18.3% of Camtek shares are owned by institutional investors. Comparatively, 79.9% of MACOM Technology Solutions Holdings shares are owned by institutional investors. 79.4% of Camtek shares are owned by insiders. Comparatively, 42.3% of MACOM Technology Solutions Holdings shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Camtek has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, MACOM Technology Solutions Holdings has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.

Summary

MACOM Technology Solutions Holdings beats Camtek on 8 of the 13 factors compared between the two stocks.

About Camtek

Camtek Ltd. provides automated and technological solutions for production processes and products yield, enabling and supporting customers’ technologies in the semiconductor fabrication and printed circuit board (PCB) industries. The Company designs, develops, manufactures and markets products mainly based on two core technologies: automated optical inspection (AOI) and functional ink technology (FIT). The Company’s AOI systems are computerized systems that optically inspect various types of electronic product components for defects caused during the manufacturing process. Its AOI systems are used for both production processes and for manufacturers in the semiconductor fabrication industry, as well as the printed circuit board industry. The Company’s AOI products incorporate image processing software and algorithms, as well as electro-optics and precision mechanics. In addition, the Company’s AOI systems use technology to handle a range of inspection and verification needs.

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.

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