MACOM Technology Solutions (NASDAQ:MTSI) and Power Integrations (NASDAQ:POWI) Head-To-Head Analysis

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

Analyst Recommendations

This is a summary of current recommendations for MACOM Technology Solutions and Power Integrations, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MACOM Technology Solutions 1 4 5 0 2.40
Power Integrations 1 1 2 0 2.25

MACOM Technology Solutions presently has a consensus price target of $24.08, indicating a potential downside of 18.74%. Power Integrations has a consensus price target of $89.00, indicating a potential downside of 15.42%. Given Power Integrations’ higher possible upside, analysts plainly believe Power Integrations is more favorable than MACOM Technology Solutions.

Insider and Institutional Ownership

74.1% of MACOM Technology Solutions shares are owned by institutional investors. Comparatively, 97.3% of Power Integrations shares are owned by institutional investors. 32.2% of MACOM Technology Solutions shares are owned by company insiders. Comparatively, 4.1% of Power Integrations shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MACOM Technology Solutions $499.71 million 3.93 -$383.80 million ($0.60) -49.38
Power Integrations $420.67 million 7.39 $193.47 million $1.78 59.11

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

Profitability

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

Net Margins Return on Equity Return on Assets
MACOM Technology Solutions -83.56% -15.36% -4.91%
Power Integrations 45.99% 9.27% 8.24%

Volatility & Risk

MACOM Technology Solutions has a beta of 1.97, indicating that its share price is 97% more volatile than the S&P 500. Comparatively, Power Integrations has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500.

Summary

Power Integrations beats MACOM Technology Solutions on 9 of the 14 factors compared between the two stocks.

About MACOM Technology Solutions

MACOM Technology Solutions Holdings, Inc., together with its subsidiaries, designs and manufactures analog radio frequency (RF), microwave, millimeterwave, and lightwave spectrum products in the United States, China, the Asia Pacific, and internationally. The company offers a portfolio of standard and custom devices, including integrated circuits, multi-chip modules, power pallets and transistors, diodes, amplifiers, switches and switch limiters, passive and active components, and subsystems for approximately 60 product lines. Its semiconductor products are electronic components that are incorporated in electronic systems, such as wireless basestations, high density networks, active antenna arrays, radar, magnetic resonance imaging systems, and test and measurement. The company serves various markets comprising telecommunication that includes carrier infrastructure, which comprise long-haul/metro, 5G, and fiber-to-the-X/PON; data centers; and 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. It sells its products through direct sales force, applications engineering staff, independent sales representatives, resellers, and distributors, as well as an e-commerce channel. The company was founded in 1950 and is headquartered in Lowell, Massachusetts.

About Power Integrations

Power Integrations, Inc. designs, develops, and markets analog and mixed-signal integrated circuits (ICs), and other electronic components and circuitry used in high-voltage power conversion worldwide. The company offers a range of alternating current to direct current (DC) power conversion products that address power supply ranging from less than 1 watt of output to approximately 500 watts of output for mobile-device chargers, consumer appliances, utility meters, LCD monitors, main and standby power supplies for desktop computers and TVs, and other consumer and industrial applications, as well as light-emitting diode lighting. It also provides high-voltage diodes; and high-voltage gate-driver products under the SCALE and SCALE-2 product-family names. In addition, the company offers motor-driver ICs for use in refrigerator compressors, ceiling fans, air purifiers, pumps, fans and blowers, dishwashers, and laundry machines. It serves communications, computer, consumer, and industrial markets. The company sells its products to original equipment manufacturers and merchant power supply manufacturers through direct staff, as well as through a network of independent sales representatives and distributors. Power Integrations, Inc. was founded in 1988 and is headquartered in San Jose, California.

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