PDF Solutions (PDFS) vs. MACOM Technology Solutions Holdings (MTSI) Head-To-Head Review

PDF Solutions (NASDAQ: PDFS) and MACOM Technology Solutions Holdings (NASDAQ:MTSI) 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, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.

Insider and Institutional Ownership

82.5% of PDF Solutions shares are owned by institutional investors. Comparatively, 79.7% of MACOM Technology Solutions Holdings shares are owned by institutional investors. 16.2% of PDF Solutions shares are owned by company insiders. Comparatively, 42.3% of MACOM Technology Solutions Holdings shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for PDF Solutions and MACOM Technology Solutions Holdings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PDF Solutions 0 1 1 0 2.50
MACOM Technology Solutions Holdings 0 1 5 0 2.83

PDF Solutions presently has a consensus target price of $20.00, indicating a potential upside of 25.94%. MACOM Technology Solutions Holdings has a consensus target price of $58.20, indicating a potential upside of 39.94%. Given MACOM Technology Solutions Holdings’ stronger consensus rating and higher possible upside, analysts plainly believe MACOM Technology Solutions Holdings is more favorable than PDF Solutions.

Earnings & Valuation

This table compares PDF Solutions and MACOM Technology Solutions Holdings’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
PDF Solutions $104.27 million 4.92 $9.44 million $0.18 88.22
MACOM Technology Solutions Holdings $685.09 million 3.90 $136.09 million ($2.50) -16.64

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

Profitability

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

Net Margins Return on Equity Return on Assets
PDF Solutions 5.29% 2.78% 2.49%
MACOM Technology Solutions Holdings -22.43% 17.21% 7.73%

Risk & Volatility

PDF Solutions has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, MACOM Technology Solutions Holdings has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500.

Summary

MACOM Technology Solutions Holdings beats PDF Solutions on 9 of the 13 factors compared between the two stocks.

About PDF Solutions

PDF Solutions, Inc. is a provider of infrastructure technologies and services for integrated circuits (IC). The Company’s technologies and services focus on the IC manufacturing process life cycle. It operates in the segment of licensing and implementation of yield improvement solutions for integrated circuit manufacturers. The Company’s solutions combine software, test chips, an electrical wafer test system, methodologies and professional services. The Company has developed solutions for yield simulation, analysis, loss detection, and improvement. Its characterization vehicle infrastructure (CVi) enables customers to electrically characterize the manufacturing process, and establish fail-rate information needed to calibrate manufacturing yield models and prioritize yield improvement activities. Its Exensio YieldAware solution combines software and services to enable customers to collect and combine product test data and equipment signals during production.

About MACOM Technology Solutions Holdings

MACOM Technology Solutions Holdings, Inc. is a provider of high-performance analog semiconductor solutions that enable Internet applications, the cloud-connected applications economy, and the networked battlefield across the radio frequency (RF), microwave, millimeterwave and photonic spectrum. It has multiple design centers, silicon, gallium arsenide and indium phosphide fabrication, manufacturing, assembly and test, and operational facilities throughout North America, Europe, Asia and Australia. It also offers foundry services. It offered a portfolio of over 4,500 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, across more than 40 product lines serving three primary markets, as of September 30, 2016. The Company’s products are RF Power Products, Optoelectronics and Photonic Solutions, among others.

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