Head to Head Comparison: NVIDIA (NASDAQ:NVDA) vs. MACOM Technology Solutions (NASDAQ:MTSI)

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

Volatility & Risk

NVIDIA has a beta of 2.22, indicating that its stock price is 122% more volatile than the S&P 500. Comparatively, MACOM Technology Solutions has a beta of 1.77, indicating that its stock price is 77% more volatile than the S&P 500.

Institutional and Insider Ownership

65.3% of NVIDIA shares are owned by institutional investors. Comparatively, 76.1% of MACOM Technology Solutions shares are owned by institutional investors. 3.9% of NVIDIA shares are owned by insiders. Comparatively, 0.4% 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 stock will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NVIDIA	$302.97 billion	16.28	$120.07 billion	$7.91	25.87
MACOM Technology Solutions	$967.26 million	18.51	-$54.21 million	$3.11	75.37

NVIDIA has higher revenue and earnings than MACOM Technology Solutions. NVIDIA 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 NVIDIA and MACOM Technology Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NVIDIA	63.66%	96.04%	71.00%
MACOM Technology Solutions	20.70%	17.82%	12.01%

Analyst Ratings

This is a summary of recent recommendations for NVIDIA and MACOM Technology Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NVIDIA	0	1	49	5	3.07
MACOM Technology Solutions	0	3	11	2	2.94

NVIDIA currently has a consensus price target of $321.47, indicating a potential upside of 57.09%. MACOM Technology Solutions has a consensus price target of $338.08, indicating a potential upside of 44.24%. Given NVIDIA’s stronger consensus rating and higher possible upside, equities research analysts clearly believe NVIDIA is more favorable than MACOM Technology Solutions.

Summary

NVIDIA beats MACOM Technology Solutions on 12 of the 15 factors compared between the two stocks.

About NVIDIA

NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications. The Compute & Networking segment comprises Data Center computing platforms and end-to-end networking platforms, including Quantum for InfiniBand and Spectrum for Ethernet; NVIDIA DRIVE automated-driving platform and automotive development agreements; Jetson robotics and other embedded platforms; NVIDIA AI Enterprise and other software; and DGX Cloud software and services. The company's products are used in gaming, professional visualization, data center, and automotive markets. It sells its products to original equipment manufacturers, original device manufacturers, system integrators and distributors, independent software vendors, cloud service providers, consumer internet companies, add-in board manufacturers, distributors, automotive manufacturers and tier-1 automotive suppliers, and other ecosystem participants. NVIDIA Corporation was incorporated in 1993 and is headquartered in Santa Clara, California.

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.