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Reviewing Rubicon Technology (NASDAQ:RBCN) & MACOM Technology Solutions (NASDAQ:MTSI)

Defense World ·  Mar 18, 2023 01:51

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

Profitability

This table compares Rubicon Technology and MACOM Technology Solutions' net margins, return on equity and return on assets.

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Net Margins Return on Equity Return on Assets
Rubicon Technology 20.85% 3.42% 3.19%
MACOM Technology Solutions 47.53% 24.60% 12.15%

Institutional & Insider Ownership

74.9% of MACOM Technology Solutions shares are held by institutional investors. 3.6% of Rubicon Technology shares are held by insiders. Comparatively, 24.0% 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 recommendations and price targets for Rubicon Technology and MACOM Technology Solutions, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rubicon Technology 0 0 0 0 N/A
MACOM Technology Solutions 0 4 4 0 2.50

MACOM Technology Solutions has a consensus price target of $68.91, indicating a potential upside of 0.04%. Given MACOM Technology Solutions' higher probable upside, analysts plainly believe MACOM Technology Solutions is more favorable than Rubicon Technology.

Earnings and Valuation

This table compares Rubicon Technology and MACOM Technology Solutions' gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rubicon Technology $3.88 million 1.03 -$730,000.00 N/A N/A
MACOM Technology Solutions $695.65 million 7.00 $439.95 million $4.64 14.84

MACOM Technology Solutions has higher revenue and earnings than Rubicon Technology.

Risk & Volatility

Rubicon Technology has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, MACOM Technology Solutions has a beta of 1.91, suggesting that its share price is 91% more volatile than the S&P 500.

Summary

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

About Rubicon Technology

(Get Rating)

Rubicon Technology, Inc. engages in the provision of monocrystalline sapphire for applications in optical and industrial systems. It operates through the following business segments: Sapphire and Pharmacy Business. The company was founded on February 7, 2001 and is headquartered in Bensenville, IL.

About MACOM Technology Solutions

(Get Rating)

MACOM Technology Solutions Holdings, Inc. engages in designing, developing, manufacturing, and marketing semiconductors and modules. The firm is involved in the provision of products for telecommunications (Telecom), industrial and defense (I&D), and data center industries. The company was founded on March 25, 2009 and is headquartered in Lowell, MA.

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Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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