Analyzing MACOM Technology Solutions (NASDAQ:MTSI) & Dialog Semiconductor (OTCMKTS:DLGNF)

Dialog Semiconductor (OTCMKTS:DLGNF) and MACOM Technology Solutions (NASDAQ:MTSI) are both mid-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, earnings and valuation.

Valuation & Earnings

This table compares Dialog Semiconductor and MACOM Technology Solutions”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dialog Semiconductor	$1.38 billion	4.17	$84.50 million	$3.32	24.22
MACOM Technology Solutions	$679.24 million	11.95	$91.58 million	$0.98	114.69

MACOM Technology Solutions has lower revenue, but higher earnings than Dialog Semiconductor. Dialog Semiconductor 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.

Volatility & Risk

Dialog Semiconductor has a beta of 1.74, indicating that its stock price is 74% more volatile than the S&P 500. Comparatively, MACOM Technology Solutions has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Dialog Semiconductor and MACOM Technology Solutions, as provided by MarketBeat.com.

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

MACOM Technology Solutions has a consensus price target of $120.00, indicating a potential upside of 6.76%. Given MACOM Technology Solutions’ higher possible upside, analysts clearly believe MACOM Technology Solutions is more favorable than Dialog Semiconductor.

Insider & Institutional Ownership

76.1% of MACOM Technology Solutions shares are held by institutional investors. 22.8% of MACOM Technology Solutions shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dialog Semiconductor	5.72%	16.55%	13.08%
MACOM Technology Solutions	10.59%	12.59%	7.83%

Summary

MACOM Technology Solutions beats Dialog Semiconductor on 8 of the 13 factors compared between the two stocks.

About Dialog Semiconductor

Dialog Semiconductor Plc engages in the design, development, and marketing of integrated circuit (IC) products. It operates through the following segments: Custom Mixed Signal (CMS), Advanced Mixed Signal (AMS), Connectivity and Audio (C&A), and Industrial IoT. The CMS segment provides custom ICs designed to meet the needs of the customers in the mobile, industrial, automotive, computing and storage markets. The AMS segment offers standard products including CMICs, AC/DC converter solutions for smaller, fast charging power adaptors for portable devices as well as LED drivers for backlighting and solid state lighting products. The C&A segment includes standard products incorporating short-range wireless, digital cordless, Bluetooth low energy, VoIP, and low-power Wi-Fi technologies. The Industrial IoT segment consists of products enabling smart factory and building automation including non-volatile memory (NVM) ICs, industrial communication ICs, custom-designed ASICs and embedded systems, servers, and software. The company was founded in 1990 and is headquartered in Reading, the United Kingdom.

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.