Head-To-Head Contrast: Dialog Semiconductor (OTCMKTS:DLGNF) vs. MACOM Technology Solutions (NASDAQ:MTSI)

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

Risk & Volatility

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

Analyst Ratings

This is a summary of recent ratings for MACOM Technology Solutions and Dialog Semiconductor, as provided by MarketBeat.com.

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

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

Profitability

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

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

Valuation & Earnings

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

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

MACOM Technology Solutions has higher earnings, but lower revenue 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.

Institutional and Insider Ownership

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

Summary

MACOM Technology Solutions beats Dialog Semiconductor on 8 of the 13 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 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.