The Head-To-Head Analysis: MACOM Technology Solutions Holdings (NASDAQ:MTSI) & FormFactor (FORM)

The Head-To-Head Analysis: MACOM Technology Solutions Holdings (NASDAQ:MTSI) & FormFactor (FORM)

Analyst Ratings

FormFactor (NASDAQ: FORM) and MACOM Technology Solutions Holdings (NASDAQ:MTSI) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitabiliy, earnings, dividends and valuation.

This is a breakdown of recent ratings and target prices for FormFactor and MACOM Technology Solutions Holdings, as provided by MarketBeat.

FormFactor presently has a consensus price target of $15.71, indicating a potential upside of 22.29%. MACOM Technology Solutions Holdings has a consensus price target of $55.60, indicating a potential upside of 22.20%. Given FormFactor’s stronger consensus rating and higher possible upside, equities analysts plainly believe FormFactor is more favorable than MACOM Technology Solutions Holdings.

Profitability

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

Valuation & Earnings

This table compares FormFactor and MACOM Technology Solutions Holdings’ top-line revenue, earnings per share (EPS) and valuation.

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

Risk and Volatility

FormFactor has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500. Comparatively, MACOM Technology Solutions Holdings has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500.

Insider and Institutional Ownership

89.1% of FormFactor shares are held by institutional investors. Comparatively, 72.9% of MACOM Technology Solutions Holdings shares are held by institutional investors. 2.8% of FormFactor shares are held by company insiders. Comparatively, 57.1% of MACOM Technology Solutions Holdings shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

FormFactor beats MACOM Technology Solutions Holdings on 7 of the 13 factors compared between the two stocks.

FormFactor Company Profile

FormFactor, Inc. is a provider of test and measurement solutions. The Company’s segments include the Probe Cards segment and Systems segment. The Company designs, manufactures and sells multiple product lines, including probe cards, analytical probes, probe stations, integrated measurement systems, thermal sub-systems, reliability test systems, and related services. Its products provide electrical information from a range of semiconductor and electro-optical devices and integrated circuits (devices) from development to production. Probe Cards segment consists of probe card products and analytical probes. Systems segment consists of wafer probing, thermal and reliability products to enable precision on-wafer measurement of integrated circuits. Systems products are used in the early phases of the development and characterization of semiconductor processes.

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.

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