Comparing Real Goods Solar (OTCMKTS:RGSE) and MACOM Technology Solutions (NASDAQ:MTSI)

MACOM Technology Solutions (NASDAQ:MTSI) and Real Goods Solar (OTCMKTS:RGSE) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, valuation, earnings, profitability, institutional ownership and dividends.

Institutional and Insider Ownership

76.1% of MACOM Technology Solutions shares are held by institutional investors. Comparatively, 0.0% of Real Goods Solar shares are held by institutional investors. 0.4% of MACOM Technology Solutions shares are held by insiders. Comparatively, 0.9% of Real Goods Solar shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares MACOM Technology Solutions and Real Goods Solar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MACOM Technology Solutions	16.46%	16.01%	10.43%
Real Goods Solar	-253.32%	-348.97%	-149.77%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for MACOM Technology Solutions and Real Goods Solar, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MACOM Technology Solutions	0	4	9	1	2.79
Real Goods Solar	0	0	0	0	0.00

MACOM Technology Solutions currently has a consensus target price of $330.45, indicating a potential upside of 31.42%. Given MACOM Technology Solutions’ stronger consensus rating and higher possible upside, analysts plainly believe MACOM Technology Solutions is more favorable than Real Goods Solar.

Volatility & Risk

MACOM Technology Solutions has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500. Comparatively, Real Goods Solar has a beta of 0.17, meaning that its stock price is 83% less volatile than the S&P 500.

Valuation and Earnings

This table compares MACOM Technology Solutions and Real Goods Solar”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MACOM Technology Solutions	$967.26 million	19.83	-$54.21 million	$2.31	108.85
Real Goods Solar	$12.73 million	0.00	-$42.08 million	N/A	N/A

Real Goods Solar has lower revenue, but higher earnings than MACOM Technology Solutions.

Summary

MACOM Technology Solutions beats Real Goods Solar on 10 of the 12 factors compared between the two stocks.

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.

About Real Goods Solar

Real Goods Solar, Inc. operates as a residential and small business commercial solar energy engineering, procurement, and construction company in the United States. The company's Residential segment installs solar energy systems for homeowners, including lease financing, as well as small business commercial services in the continental United States. Its Sunetric segment installs solar energy systems for homeowners and business owners in Hawaii. The company's POWERHOUSE segment manufactures and sells solar shingles. The company Real Goods Solar, Inc. offers solar energy services, including design, procurement, permitting, build-out, grid connection, financing referrals, and warranty. The company markets its products and services through an outside sales team, inside sales, e-sales, and customer referral programs, as well as an online direct marketing channel. Real Goods Solar, Inc. was founded in 1978 and is headquartered in Denver, Colorado.