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

Valuation and Earnings

This table compares MACOM Technology Solutions Holdings and Camtek’s 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 4.25 $136.09 million ($2.50) -18.14
Camtek $116.68 million 1.54 $13.85 million $0.08 63.50

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

Insider & Institutional Ownership

79.9% of MACOM Technology Solutions Holdings shares are owned by institutional investors. Comparatively, 18.3% of Camtek shares are owned by institutional investors. 42.3% of MACOM Technology Solutions Holdings shares are owned by company insiders. Comparatively, 79.4% of Camtek shares are owned by company 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.

Analyst Recommendations

This is a summary of recent ratings and price targets for MACOM Technology Solutions Holdings and Camtek, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MACOM Technology Solutions Holdings 0 2 4 0 2.67
Camtek 0 1 1 0 2.50

MACOM Technology Solutions Holdings presently has a consensus price target of $55.60, suggesting a potential upside of 22.57%. Camtek has a consensus price target of $7.00, suggesting a potential upside of 37.80%. Given Camtek’s higher probable upside, analysts plainly believe Camtek is more favorable than MACOM Technology Solutions Holdings.

Profitability

This table compares MACOM Technology Solutions Holdings and Camtek’s 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%
Camtek 2.56% 15.32% 10.10%

Volatility and Risk

MACOM Technology Solutions Holdings has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, Camtek has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.

Summary

MACOM Technology Solutions Holdings beats Camtek on 8 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.

Camtek Company Profile

Camtek Ltd. provides automated and technological solutions for production processes and products yield, enabling and supporting customers’ technologies in the semiconductor fabrication and printed circuit board (PCB) industries. The Company designs, develops, manufactures and markets products mainly based on two core technologies: automated optical inspection (AOI) and functional ink technology (FIT). The Company’s AOI systems are computerized systems that optically inspect various types of electronic product components for defects caused during the manufacturing process. Its AOI systems are used for both production processes and for manufacturers in the semiconductor fabrication industry, as well as the printed circuit board industry. The Company’s AOI products incorporate image processing software and algorithms, as well as electro-optics and precision mechanics. In addition, the Company’s AOI systems use technology to handle a range of inspection and verification needs.

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