Reviewing ASML Holding N.V. (ASML) & MACOM Technology Solutions Holdings (MTSI)
ASML Holding N.V. (NASDAQ: ASML) and MACOM Technology Solutions Holdings (NASDAQ:MTSI) are both mid-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.
Institutional and Insider Ownership
16.7% of ASML Holding N.V. shares are held by institutional investors. Comparatively, 75.1% of MACOM Technology Solutions Holdings shares are held by institutional investors. 42.3% of MACOM Technology Solutions Holdings shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk and Volatility
ASML Holding N.V. has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, MACOM Technology Solutions Holdings has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500.
This table compares ASML Holding N.V. and MACOM Technology Solutions Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|ASML Holding N.V.||23.69%||18.48%||10.71%|
|MACOM Technology Solutions Holdings||-22.43%||17.21%||7.73%|
Valuation & Earnings
This table compares ASML Holding N.V. and MACOM Technology Solutions Holdings’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ASML Holding N.V.||N/A||N/A||N/A||$4.57||33.63|
|MACOM Technology Solutions Holdings||$685.09 million||3.91||$136.09 million||($2.50)||-16.69|
MACOM Technology Solutions Holdings has higher revenue and earnings than ASML Holding N.V.. MACOM Technology Solutions Holdings is trading at a lower price-to-earnings ratio than ASML Holding N.V., indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings for ASML Holding N.V. and MACOM Technology Solutions Holdings, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|ASML Holding N.V.||0||8||10||0||2.56|
|MACOM Technology Solutions Holdings||0||1||4||0||2.80|
ASML Holding N.V. currently has a consensus target price of $160.67, indicating a potential upside of 4.55%. MACOM Technology Solutions Holdings has a consensus target price of $55.60, indicating a potential upside of 33.27%. Given MACOM Technology Solutions Holdings’ stronger consensus rating and higher possible upside, analysts clearly believe MACOM Technology Solutions Holdings is more favorable than ASML Holding N.V..
ASML Holding N.V. pays an annual dividend of $1.11 per share and has a dividend yield of 0.7%. MACOM Technology Solutions Holdings does not pay a dividend. ASML Holding N.V. pays out 24.3% of its earnings in the form of a dividend.
ASML Holding N.V. Company Profile
ASML Holding N.V. is a holding company. The Company is a manufacturer of chip-making equipment. The Company is engaged in the development, production, marketing, selling and servicing of semiconductor equipment systems, consisting of lithography systems. The Company’s products include systems, and installed base products and services. The Company’s principal operations are in the Netherlands, the United States and Asia. The Company offers TWINSCAN systems, equipped with lithography system with a mercury lamp as light source (i-line), Krypton Fluoride (KrF) and Argon Fluoride (ArF) light sources for 300 millimeter processing wafers for manufacturing environments for which imaging at a small resolution is required. TWINSCAN systems also include immersion lithography systems (TWINSCAN immersion systems). The Company also offers NXE systems, which are equipped with extreme ultraviolet (EUV) light source technology. The Company offers YieldStar, a wafer metrology system.
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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