Head-To-Head Analysis: MACOM Technology Solutions (MTSI) and Pixelworks (PXLW)
Pixelworks (NASDAQ:PXLW) and MACOM Technology Solutions (NASDAQ:MTSI) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.
This table compares Pixelworks and MACOM Technology Solutions’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MACOM Technology Solutions||-22.92%||3.33%||1.58%|
Pixelworks has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, MACOM Technology Solutions has a beta of 1.77, meaning that its share price is 77% more volatile than the S&P 500.
Institutional and Insider Ownership
33.6% of Pixelworks shares are held by institutional investors. Comparatively, 89.8% of MACOM Technology Solutions shares are held by institutional investors. 4.1% of Pixelworks shares are held by insiders. Comparatively, 32.2% of MACOM Technology Solutions shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Pixelworks and MACOM Technology Solutions’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Pixelworks||$80.64 million||1.89||-$4.17 million||$0.10||42.50|
|MACOM Technology Solutions||$698.77 million||1.38||-$169.49 million||$1.88||7.87|
Pixelworks has higher earnings, but lower revenue than MACOM Technology Solutions. MACOM Technology Solutions is trading at a lower price-to-earnings ratio than Pixelworks, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and target prices for Pixelworks and MACOM Technology Solutions, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MACOM Technology Solutions||3||4||3||0||2.00|
Pixelworks presently has a consensus price target of $7.75, indicating a potential upside of 82.35%. MACOM Technology Solutions has a consensus price target of $27.20, indicating a potential upside of 83.78%. Given MACOM Technology Solutions’ higher probable upside, analysts clearly believe MACOM Technology Solutions is more favorable than Pixelworks.
MACOM Technology Solutions beats Pixelworks on 8 of the 14 factors compared between the two stocks.
Pixelworks Company Profile
Pixelworks, Inc. designs, develops, and markets video processing semiconductors, intellectual property cores, software, and custom application specific integrated circuits (ICs) solutions for video applications. Its products enable customers to deliver the energy efficient video quality on their devices. The company provides video display processor products, including image processor ICs, such as embedded microprocessors, digital signal processing technology, and software that control the operations and signal processing within high-end display systems; and video co-processor ICs that work with an image processor to post-process video signals to enhance the performance or feature set of the overall video solution, as well as transcoder ICs, such as embedded microprocessors, digital signal processing technology, and software that control the operations and signal processing for converting bitrates, resolutions, and codecs. As of December 31, 2017, it had an intellectual property portfolio of 536 patents related to the visual display of digital image data. The company's products are used in digital projection systems, tablets, and smartphones, as well as over-the-air streaming devices. Pixelworks, Inc. sells its products through a direct sales force, as well as distributors and manufacturers' representatives worldwide. The company was founded in 1997 and is based in San Jose, California.
MACOM Technology Solutions Company Profile
MACOM Technology Solutions Holdings, Inc., together with its subsidiaries, designs and manufactures analog radio frequency (RF), microwave, millimeterwave, and photonic semiconductor solutions in the United States, the Asia Pacific, and internationally. The company offers a portfolio of 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 for more than 60 product lines. Its semiconductor products are electronic components that are incorporated in electronic systems, such as point-to-point wireless backhaul radios, high density networks, active antenna arrays, radars, magnetic resonance imaging systems, and unmanned aerial vehicles. The company serves various markets, such as networks, which includes carrier and enterprise infrastructure, wired broadband and cellular backhaul, cellular infrastructure, photonic solutions, and fiber optic applications; aerospace and defense comprising military and commercial radar, RF jammers, electronic countermeasures, and communication data links; and multi-market that consist of industrial, medical, test and measurement, and scientific applications. It sells its products through direct sales force, applications engineering staff, independent sales representatives, resellers, and distributors, as well as an e-commerce channel. MACOM Technology Solutions Holdings, Inc. was incorporated in 2009 and is headquartered in Lowell, Massachusetts.
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