MACOM Technology Solutions (NASDAQ:MTSI) versus GCT Semiconductor (NYSE:GCTS) Financial Analysis

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

Institutional and Insider Ownership

76.1% of MACOM Technology Solutions shares are held by institutional investors. Comparatively, 28.1% of GCT Semiconductor shares are held by institutional investors. 22.8% of MACOM Technology Solutions shares are held by company insiders. Comparatively, 0.2% of GCT Semiconductor shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MACOM Technology Solutions	10.59%	12.59%	7.83%
GCT Semiconductor	N/A	N/A	-27.58%

Volatility and Risk

MACOM Technology Solutions has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500. Comparatively, GCT Semiconductor has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for MACOM Technology Solutions and GCT Semiconductor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MACOM Technology Solutions	0	2	8	0	2.80
GCT Semiconductor	0	0	0	0	N/A

MACOM Technology Solutions presently has a consensus target price of $117.00, suggesting a potential upside of 15.98%. Given MACOM Technology Solutions’ higher probable upside, research analysts clearly believe MACOM Technology Solutions is more favorable than GCT Semiconductor.

Valuation and Earnings

This table compares MACOM Technology Solutions and GCT Semiconductor’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MACOM Technology Solutions	$679.24 million	10.71	$91.58 million	$0.88	114.64
GCT Semiconductor	$16.03 million	9.42	-$2.00 million	N/A	N/A

MACOM Technology Solutions has higher revenue and earnings than GCT Semiconductor.

Summary

MACOM Technology Solutions beats GCT Semiconductor on 11 of the 11 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 GCT Semiconductor

GCT Semiconductor Holding, Inc., operates as a fabless semiconductor company, designs, develops, and markets integrated circuits for the wireless semiconductor industry. The company provides RF and modem chipsets based on 4G LTE technology, including 4G LTE, 4.5G LTE Advanced, and 4.75G LTE Advanced-Pro. It also develops and sells cellular IoT chipsets for low-speed mobile networks such as eMTC/NB-IOT/Sigfox, and other network protocols; and 5G solutions. Its products and solutions are used in smartphones, tablets, hotspots, CPEs, USB dongles, routers, and M2M applications. The company sells its products directly or indirectly through distributors to original equipment manufacturers and original design manufacturers primarily in Taiwan, China, Korea and Japan, Europe, North America and South America. The company was formerly known as Global Communication Technology, Inc. GCT Semiconductor Holding, Inc. was founded in 1998 and is headquartered in San Jose, California.