Head-To-Head Analysis: MACOM Technology Solutions (NASDAQ:MTSI) vs. GlobalFoundries (NASDAQ:GFS)

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

Analyst Ratings

This is a breakdown of current recommendations for MACOM Technology Solutions and GlobalFoundries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MACOM Technology Solutions	0	2	8	1	2.91
GlobalFoundries	0	7	7	0	2.50

MACOM Technology Solutions currently has a consensus target price of $131.50, indicating a potential upside of 19.07%. GlobalFoundries has a consensus target price of $49.64, indicating a potential upside of 28.14%. Given GlobalFoundries’ higher probable upside, analysts plainly believe GlobalFoundries is more favorable than MACOM Technology Solutions.

Volatility and Risk

MACOM Technology Solutions has a beta of 1.74, meaning that its stock price is 74% more volatile than the S&P 500. Comparatively, GlobalFoundries has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500.

Institutional & Insider Ownership

76.1% of MACOM Technology Solutions shares are held by institutional investors. 16.3% of MACOM Technology Solutions shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MACOM Technology Solutions	-13.05%	12.42%	7.84%
GlobalFoundries	-3.93%	6.05%	3.82%

Valuation and Earnings

This table compares MACOM Technology Solutions and GlobalFoundries”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MACOM Technology Solutions	$790.55 million	10.39	$76.86 million	($1.44)	-76.69
GlobalFoundries	$6.75 billion	3.17	-$265.00 million	($0.48)	-80.71

MACOM Technology Solutions has higher earnings, but lower revenue than GlobalFoundries. GlobalFoundries 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 GlobalFoundries on 11 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 GlobalFoundries

GlobalFoundries Inc., a semiconductor foundry, provides range of mainstream wafer fabrication services and technologies worldwide. It manufactures various semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units. GlobalFoundries Inc. has a strategic partnership with Efficient Computer to develop high-performance computer processors. The company was incorporated in 2008 and is headquartered in Malta, New York.