Analyzing SUMCO Corp/ADR (SUOPY) & MACOM Technology Solutions (MTSI)

SUMCO Corp/ADR (OTCMKTS:SUOPY) and MACOM Technology Solutions (NASDAQ:MTSI) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.

Analyst Ratings

This is a breakdown of current recommendations and price targets for SUMCO Corp/ADR and MACOM Technology Solutions, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SUMCO Corp/ADR 0 0 0 0 N/A
MACOM Technology Solutions 3 4 4 0 2.09

MACOM Technology Solutions has a consensus price target of $30.27, suggesting a potential upside of 49.86%. Given MACOM Technology Solutions’ higher probable upside, analysts plainly believe MACOM Technology Solutions is more favorable than SUMCO Corp/ADR.

Risk and Volatility

SUMCO Corp/ADR has a beta of 2.19, suggesting that its stock price is 119% more volatile than the S&P 500. Comparatively, MACOM Technology Solutions has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500.

Valuation & Earnings

This table compares SUMCO Corp/ADR 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
SUMCO Corp/ADR $2.32 billion 1.85 $240.45 million $1.64 17.92
MACOM Technology Solutions $698.77 million 1.88 -$169.49 million $1.88 10.74

SUMCO Corp/ADR has higher revenue and earnings than MACOM Technology Solutions. MACOM Technology Solutions is trading at a lower price-to-earnings ratio than SUMCO Corp/ADR, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares SUMCO Corp/ADR and MACOM Technology Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SUMCO Corp/ADR 13.04% 13.62% 7.09%
MACOM Technology Solutions -22.92% 3.33% 1.58%

Dividends

SUMCO Corp/ADR pays an annual dividend of $0.29 per share and has a dividend yield of 1.0%. MACOM Technology Solutions does not pay a dividend. SUMCO Corp/ADR pays out 17.7% of its earnings in the form of a dividend.

Institutional and Insider Ownership

89.9% of MACOM Technology Solutions shares are owned by institutional investors. 32.2% of MACOM Technology Solutions shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

SUMCO Corp/ADR beats MACOM Technology Solutions on 8 of the 15 factors compared between the two stocks.

SUMCO Corp/ADR Company Profile

Sumco Corporation, together with its subsidiaries, manufactures and sells silicon wafers for the semiconductor industry in Japan, North America, Asia, and Europe. It provides monocrystalline ingots, as well as polished, annealed, epitaxial, junction isolated, silicon-on-insulator, and reclaimed polished wafers. The company was formerly known as Sumitomo Mitsubishi Silicon Corp. and changed its name to Sumco Corporation in August 2005. Sumco Corporation was founded in 1999 and is headquartered in Tokyo, Japan.

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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