GlobalFoundries (NASDAQ:GFS) & MACOM Technology Solutions (NASDAQ:MTSI) Head to Head Comparison

GlobalFoundries (NASDAQ:GFS) and MACOM Technology Solutions (NASDAQ:MTSI) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GlobalFoundries	-3.93%	6.05%	3.82%
MACOM Technology Solutions	-13.05%	12.42%	7.84%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GlobalFoundries	$6.75 billion	3.08	-$265.00 million	($0.48)	-78.60
MACOM Technology Solutions	$790.55 million	10.26	$76.86 million	($1.44)	-75.74

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

Institutional & Insider Ownership

76.1% of MACOM Technology Solutions shares are held by institutional investors. 16.3% of MACOM Technology Solutions shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for GlobalFoundries and MACOM Technology Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GlobalFoundries	0	7	7	0	2.50
MACOM Technology Solutions	0	2	8	1	2.91

GlobalFoundries presently has a consensus target price of $49.64, indicating a potential upside of 31.57%. MACOM Technology Solutions has a consensus target price of $131.50, indicating a potential upside of 20.56%. Given GlobalFoundries’ higher probable upside, equities analysts clearly believe GlobalFoundries is more favorable than MACOM Technology Solutions.

Risk & Volatility

GlobalFoundries has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500. Comparatively, MACOM Technology Solutions has a beta of 1.74, meaning that its stock price is 74% more volatile than the S&P 500.

Summary

MACOM Technology Solutions beats GlobalFoundries on 11 of the 15 factors compared between the two stocks.

About GlobalFoundries

GlobalFoundries Inc., a semiconductor foundry, provides range of mainstream wafer fabrication services and technologies worldwide. It manufactures various semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units. GlobalFoundries Inc. has a strategic partnership with Efficient Computer to develop high-performance computer processors. The company was incorporated in 2008 and is headquartered in Malta, New York.

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.