Analyzing MACOM Technology Solutions (NASDAQ:MTSI) and Alpha and Omega Semiconductor (NASDAQ:AOSL)

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for MACOM Technology Solutions and Alpha and Omega Semiconductor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MACOM Technology Solutions	0	4	9	2	2.87
Alpha and Omega Semiconductor	1	3	3	0	2.29

MACOM Technology Solutions presently has a consensus price target of $341.25, indicating a potential upside of 28.64%. Alpha and Omega Semiconductor has a consensus price target of $41.50, indicating a potential upside of 68.49%. Given Alpha and Omega Semiconductor’s higher probable upside, analysts clearly believe Alpha and Omega Semiconductor is more favorable than MACOM Technology Solutions.

Profitability

This table compares MACOM Technology Solutions and Alpha and Omega Semiconductor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MACOM Technology Solutions	20.70%	17.82%	12.01%
Alpha and Omega Semiconductor	-6.23%	-4.88%	-3.99%

Risk & Volatility

MACOM Technology Solutions has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500. Comparatively, Alpha and Omega Semiconductor has a beta of 2.6, meaning that its stock price is 160% more volatile than the S&P 500.

Insider & Institutional Ownership

76.1% of MACOM Technology Solutions shares are held by institutional investors. Comparatively, 79.0% of Alpha and Omega Semiconductor shares are held by institutional investors. 0.4% of MACOM Technology Solutions shares are held by insiders. Comparatively, 16.7% of Alpha and Omega Semiconductor shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares MACOM Technology Solutions and Alpha and Omega Semiconductor”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MACOM Technology Solutions	$1.16 billion	17.40	-$54.21 million	$3.11	85.30
Alpha and Omega Semiconductor	$678.93 million	1.09	-$42.26 million	($1.41)	-17.47

Alpha and Omega Semiconductor has lower revenue, but higher earnings than MACOM Technology Solutions. Alpha and Omega Semiconductor 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.

Summary

MACOM Technology Solutions beats Alpha and Omega Semiconductor on 10 of the 15 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, Australia, Japan, Malaysia, Singapore, South Korea, Taiwan, Thailand, 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 Alpha and Omega Semiconductor

Alpha and Omega Semiconductor Limited designs, develops, and supplies power semiconductor products for computing, consumer electronics, communication, and industrial applications in Hong Kong, China, South Korea, the United States, and internationally. It offers power discrete products, including metal-oxide-semiconductor field-effect transistors (MOSFET), SRFETs, XSFET, electrostatic discharge, protected MOSFETs, high and mid-voltage MOSFETs, and insulated gate bipolar transistors for use in smart phone chargers, battery packs, notebooks, desktop and servers, data centers, base stations, graphics card, game boxes, TVs, AC adapters, power supplies, motor control, power tools, E-vehicles, white goods and industrial motor drives, UPS systems, solar inverters, and industrial welding. The company also provides power ICs that deliver power, as well as control and regulate the power management variables, such as the flow of current and level of voltage. Its power ICs are used in flat panel displays, TVs, notebooks, graphic cards, servers, DVD/Blu-Ray players, set-top boxes, and networking equipment. In addition, the company offers transient voltage suppressors, analog switch, and electromagnetic interference filter for notebooks, desktop PCs, tablets, flat panel displays, TVs, smart phones, and portable electronic devices; and 650V and 1200V SiC MOSFET. Alpha and Omega Semiconductor Limited was incorporated in 2000 and is headquartered in Sunnyvale, California.