Contrasting Rohm (OTCMKTS:ROHCY) and MACOM Technology Solutions (NASDAQ:MTSI)

MACOM Technology Solutions (NASDAQ:MTSI) and Rohm (OTCMKTS:ROHCY) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

Valuation & Earnings

This table compares MACOM Technology Solutions and Rohm”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MACOM Technology Solutions	$1.33 billion	13.78	$335.25 million	$4.30	55.73
Rohm	$3.20 billion	2.41	-$1.05 billion	($2.59)	-7.72

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MACOM Technology Solutions	25.25%	22.46%	15.71%
Rohm	-29.79%	4.04%	2.47%

Institutional & Insider Ownership

76.1% of MACOM Technology Solutions shares are owned by institutional investors. 0.4% of MACOM Technology Solutions shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

MACOM Technology Solutions has a beta of 1.82, suggesting that its share price is 82% more volatile than the S&P 500. Comparatively, Rohm has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MACOM Technology Solutions	0	3	10	2	2.93
Rohm	0	1	1	0	2.50

MACOM Technology Solutions currently has a consensus price target of $316.25, indicating a potential upside of 31.97%. Given MACOM Technology Solutions’ stronger consensus rating and higher possible upside, equities analysts plainly believe MACOM Technology Solutions is more favorable than Rohm.

Summary

MACOM Technology Solutions beats Rohm on 14 of the 15 factors compared between the two stocks.

About MACOM Technology Solutions

MACOM Technology Solutions designs and supplies semiconductor products for applications that use radio frequency, microwave, millimeter-wave and optical signals. Its products include amplifiers, switches, diodes, mixers, attenuators and other components used in communications and electronic systems. The company serves customers in markets including telecommunications, data centers, aerospace and defense, and industrial applications. Its components are used in equipment such as wireless infrastructure, high-speed optical networks, radar and test systems.

About Rohm

ROHM Co., Ltd. is a Japan-based semiconductor and electronic components manufacturer headquartered in Kyoto. The company develops and supplies integrated circuits, semiconductor devices, modules and passive components, including resistors. Its products are used in automotive systems, industrial equipment, consumer electronics and communications devices. ROHM serves customers in Japan and international markets through a global network of operations and sales offices. Founded in 1958 as Toyo Electronics Industry, the company initially focused on resistors and adopted the name ROHM in 1981.