MACOM Technology Solutions (NASDAQ:MTSI) and nLIGHT (NASDAQ:LASR) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.
Institutional and Insider Ownership
69.2% of MACOM Technology Solutions shares are owned by institutional investors. Comparatively, 86.5% of nLIGHT shares are owned by institutional investors. 32.2% of MACOM Technology Solutions shares are owned by insiders. Comparatively, 5.5% of nLIGHT shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for MACOM Technology Solutions and nLIGHT, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
MACOM Technology Solutions | 0 | 1 | 9 | 0 | 2.90 |
nLIGHT | 0 | 2 | 5 | 1 | 2.88 |
MACOM Technology Solutions currently has a consensus price target of $57.2222, indicating a potential downside of 5.42%. nLIGHT has a consensus price target of $40.50, indicating a potential upside of 30.77%. Given nLIGHT's higher probable upside, analysts clearly believe nLIGHT is more favorable than MACOM Technology Solutions.
Profitability
This table compares MACOM Technology Solutions and nLIGHT's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
MACOM Technology Solutions | -8.69% | 10.47% | 2.68% |
nLIGHT | -13.57% | -9.52% | -7.53% |
Volatility & Risk
MACOM Technology Solutions has a beta of 2.32, meaning that its share price is 132% more volatile than the S&P 500. Comparatively, nLIGHT has a beta of 2.68, meaning that its share price is 168% more volatile than the S&P 500.
Valuation and Earnings
This table compares MACOM Technology Solutions and nLIGHT's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
MACOM Technology Solutions | $530.04 million | 7.80 | $-46,080,000.00 | $0.39 | 155.13 |
nLIGHT | $176.62 million | 7.04 | $-12,880,000.00 | ($0.24) | -129.04 |
nLIGHT has lower revenue, but higher earnings than MACOM Technology Solutions. nLIGHT 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 nLIGHT on 9 of the 15 factors compared between the two stocks.