Head-To-Head Comparison: MACOM Technology Solutions (NASDAQ:MTSI) & STMicroelectronics (NYSE:STM)

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

Volatility and Risk

MACOM Technology Solutions has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500. Comparatively, STMicroelectronics has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MACOM Technology Solutions	$675.17 million	8.52	$439.95 million	$4.30	18.85
STMicroelectronics	$16.13 billion	2.62	$3.96 billion	$4.64	10.03

STMicroelectronics has higher revenue and earnings than MACOM Technology Solutions. STMicroelectronics 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.

Insider & Institutional Ownership

76.1% of MACOM Technology Solutions shares are owned by institutional investors. Comparatively, 5.6% of STMicroelectronics shares are owned by institutional investors. 24.0% of MACOM Technology Solutions shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MACOM Technology Solutions	45.32%	19.48%	10.66%
STMicroelectronics	25.36%	33.67%	21.59%

Analyst Ratings

This is a summary of recent ratings and target prices for MACOM Technology Solutions and STMicroelectronics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MACOM Technology Solutions	0	4	4	0	2.50
STMicroelectronics	1	3	8	0	2.58

MACOM Technology Solutions currently has a consensus price target of $79.44, indicating a potential downside of 1.97%. STMicroelectronics has a consensus price target of $47.25, indicating a potential upside of 1.57%. Given STMicroelectronics’ stronger consensus rating and higher possible upside, analysts plainly believe STMicroelectronics is more favorable than MACOM Technology Solutions.

Summary

STMicroelectronics beats MACOM Technology Solutions on 8 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 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, Taiwan, Japan, Singapore, Thailand, South Korea, Australia, Malaysia, 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 STMicroelectronics

STMicroelectronics N.V., together with its subsidiaries, designs, develops, manufactures, and sells semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates through Automotive and Discrete Group; Analog, MEMS and Sensors Group; and Microcontrollers and Digital ICs Group segments. The Automotive and Discrete Group segment offers automotive integrated circuits (ICs), and discrete and power transistor products. The Analog, MEMS and Sensors Group segment provides industrial application-specific integrated circuits (ASICs) and application-specific standard products (ASSPs); general purpose analog products; custom analog ICs; wireless charging solutions; galvanic isolated gate drivers; low and high voltage amplifiers, comparators, and current-sense amplifiers; MasterGaN, a solution that integrates a silicon driver and GaN power transistors in a single package; wireline and wireless connectivity ICs; touch screen controllers; micro-electro-mechanical systems (MEMS) products, including sensors or actuators; and optical sensing solutions. The Microcontrollers and Digital ICs Group segment offers general purpose and secure microcontrollers; radio frequency (RF) and electrically erasable programmable read-only memories; and RF, digital, and mixed-signal ASICs. It also provides assembly and other services. The company sells its products through distributors and retailers, as well as through sales representatives. It serves automotive, industrial, personal electronics and communications equipment, and computers and peripherals markets. STMicroelectronics N.V. was incorporated in 1987 and is headquartered in Geneva, Switzerland.