Contrasting MACOM Technology Solutions Holdings (NASDAQ:MTSI) & Photronics (PLAB)

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

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
MACOM Technology Solutions Holdings $685.09 million 3.81 $136.09 million ($2.50) -16.30
Photronics $448.71 million 1.46 $118.26 million $0.26 36.54

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

Analyst Recommendations

This is a summary of current ratings and target prices for MACOM Technology Solutions Holdings and Photronics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MACOM Technology Solutions Holdings 0 1 4 0 2.80
Photronics 0 2 2 0 2.50

MACOM Technology Solutions Holdings presently has a consensus target price of $55.60, suggesting a potential upside of 36.41%. Photronics has a consensus target price of $13.50, suggesting a potential upside of 42.11%. Given Photronics’ higher probable upside, analysts clearly believe Photronics is more favorable than MACOM Technology Solutions Holdings.

Risk & Volatility

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, Photronics has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500.

Insider & Institutional Ownership

73.0% of MACOM Technology Solutions Holdings shares are owned by institutional investors. Comparatively, 97.9% of Photronics shares are owned by institutional investors. 42.3% of MACOM Technology Solutions Holdings shares are owned by company insiders. Comparatively, 3.7% of Photronics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares MACOM Technology Solutions Holdings and Photronics’ 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%
Photronics 3.81% 1.84% 1.53%

Summary

MACOM Technology Solutions Holdings beats Photronics on 9 of the 13 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.

Photronics Company Profile

Photronics, Inc. is a manufacturer of photomasks, which are photographic quartz plates containing microscopic images of electronic circuits. As of October 30, 2016, the Company operated principally from nine manufacturing facilities: two located in Europe, three in Taiwan, one in Korea and three in the United States. Photomasks are used in the manufacture of semiconductors and flat panel displays (FPDs), and are used as masters to transfer circuit patterns onto semiconductor wafers and flat panel substrates during the fabrication of integrated circuits (ICs), and a range of FPDs and other types of electrical and optical components. The Company offers reticle and photomask maintenance, including pellicle replacement, mask cleaning and re-certification, at all its sites across the world. Its products include Mature Binary, Advanced Binary Reticles, Phase Shift Masks-Embedded Attenuated Phase Shift Masks (EAPSM), Other Advanced Products and Large Area Masks.

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