Head-to-Head: Axcelis Technologies VS. MACOM Technology Solutions Holdings

When talking about computer technology companies in the small-cap sector, two names that come to mind are Axcelis Technologies (NASDAQ:$ACLS) and MACOM Technology Solutions Holdings (NASDAQ:$MTSI). How do these two companies stack up against one another? Let’s take a look at the numbers.

Valuation & Earnings

Axcelis reported Gross Revenue of $324.69 million, with an EBITDA of $37.37 million. They also reported an EPS of $0.91, a Price/Earnings Ratio of 30.82, and a Price/Sales Ratio of 2.70. Meanwhile, MACOM had a Gross Revenue of $685.09 million, an EBITDA of $136.09 million, a Price/Sales Ratio of 4.07, a reported EPS of -$2.50 and a negative P/E of -17.38.

Both MACOM’s higher earnings and lower P/E ratio indicate that it is the more affordable stock.

Profitability

Axcelis Technologies currently holds a Net Margin of 9.10% with a Return on Equity of 12.52% and a Return on Assets of 8.41%, whereas MACOM has a negative Net Margin of -22.43% with a ROE of 17.21% and a ROA of 7.73%.

Analyst Ratings

According to MarketBeat.com, Axcelis currently holds 3 ‘Buy’ ratings and 1 ‘Hold’ rating, giving it an aggregate Rating Score of 2.75, whereas MACOM currently holds 5 ‘Buy’ ratings and 1 ‘Hold’ rating, giving it a Rating Score of 2.83.

As for consensus price, Axcelis currently has a consensus price of $25.60, with a potential downside of 8.73%, whereas MACOM has a consensus target price of $58.20, indicating a potential upside of 33.98%. Given that MACOM holds both a bigger upside and a higher consensus Rating Score, it’s clear that analysts favor MACOM over Axcelis.

Insiders & Institutions

Strong institutional ownership can indicate that firms have faith in the continued performance of a company. Though insider ownership does not carry the same risks as outside ownership, their vested interest can also indicate faith in the company.

Axcelis currently sits at 75.3% institutional ownership, compared to 79.7% for MACOM. Meanwhile, 5.7% of Axcelis stock is owned by insiders, whereas 42.3% of MACOM is held by insiders.

What are the Risks?

Axcelis holds a beta of 1.15. This indicates that the stock is 15% more volatile than the S&P 500. Whereas MACOM has a beta of 1.43, indicating it is 43% more volatile than the S&P 500.