Financial Analysis: SEALSQ (NASDAQ:LAES) and MACOM Technology Solutions (NASDAQ:MTSI)

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

Institutional & Insider Ownership

76.1% of MACOM Technology Solutions shares are held by institutional investors. Comparatively, 1.3% of SEALSQ shares are held by institutional investors. 16.3% of MACOM Technology Solutions shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MACOM Technology Solutions	$790.55 million	8.26	$76.86 million	($1.44)	-61.02
SEALSQ	$10.98 million	20.88	-$3.27 million	N/A	N/A

MACOM Technology Solutions has higher revenue and earnings than SEALSQ.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MACOM Technology Solutions	0	2	8	1	2.91
SEALSQ	0	0	1	0	3.00

MACOM Technology Solutions currently has a consensus target price of $131.50, suggesting a potential upside of 49.66%. SEALSQ has a consensus target price of $1.75, suggesting a potential downside of 28.10%. Given MACOM Technology Solutions’ higher probable upside, equities research analysts plainly believe MACOM Technology Solutions is more favorable than SEALSQ.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MACOM Technology Solutions	-13.05%	12.42%	7.84%
SEALSQ	N/A	N/A	N/A

Volatility and Risk

MACOM Technology Solutions has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500. Comparatively, SEALSQ has a beta of -14.55, suggesting that its stock price is 1,555% less volatile than the S&P 500.

Summary

MACOM Technology Solutions beats SEALSQ on 10 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 SEALSQ

SEALSQ Corp, together with its subsidiaries, designs, develops, and markets semiconductor chips in Europe, the Middle East, Africa, North America, the Asia Pacific, and Latin America. It offers semiconductors, such as VaultIC secure elements, secure arm platform, and smart card reader chips; identity provisioning services, such as IoT device provisioning and chip provisioning; and managed PKI for IoT solutions and trust services. The company provides device-to-cloud authentication, device attestation for matter, GSMA root certificate, device-to-device authentication, data protection, anti-counterfeiting and brand protection, security access, device ID provisioning, identity lifecycle management, and satellite IoT connectivity solutions. Its products are used in various applications, such as smart energy, smart home, automotive EV charging, consumer IoT, aerospace and military, telecommunications, logistics, medical, luxury, and other industrial applications. SEALSQ Corp was founded in 2022 and is based in Cointrin, Switzerland.