AXTI vs MTSI

For growth investors, MACOM Technology Solutions Holdings, Inc.

(MTSI) is the stronger pick with 32. 6% revenue growth year-over-year, versus -11. 1% for AXT, Inc. (AXTI). Analysts rate AXT, Inc. (AXTI) a "Buy" — based on 11 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

Over the past 5 years, AXT, Inc.

(AXTI) delivered a total return of +1022%, compared to +513. 6% for MACOM Technology Solutions Holdings, Inc. (MTSI). Over 10 years, the gap is even starker: AXTI returned +33. 6% versus MTSI's +795. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), MACOM Technology Solutions Holdings, Inc.

(MTSI) is the lower-risk stock at 1. 75β versus AXT, Inc. 's 4. 18β — meaning AXTI is approximately 139% more volatile than MTSI relative to the S&P 500. On balance sheet safety, AXT, Inc. (AXTI) carries a lower debt/equity ratio of 20% versus 41% for MACOM Technology Solutions Holdings, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), MACOM Technology Solutions Holdings, Inc.

(MTSI) is pulling ahead at 32. 6% versus -11. 1% for AXT, Inc. (AXTI). On earnings-per-share growth, the picture is similar: AXT, Inc. grew EPS -81. 5% year-over-year, compared to -170. 2% for MACOM Technology Solutions Holdings, Inc.. Over a 3-year CAGR, MTSI leads at 12. 7% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

MACOM Technology Solutions Holdings, Inc.

(MTSI) is the more profitable company, earning -5. 6% net margin versus -24. 1% for AXT, Inc. — meaning it keeps -5. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MTSI leads at 13. 4% versus -24. 9% for AXTI. At the gross margin level — before operating expenses — MTSI leads at 54. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, MACOM Technology Solutions Holdings, Inc.

(MTSI) trades at 76. 9x forward P/E versus 3831. 1x for AXT, Inc. — 3754. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MTSI: -26. 3% to $254. 00.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, MACOM Technology Solutions Holdings, Inc.

(MTSI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+795. 9% 10Y return). AXT, Inc. (AXTI) carries a higher beta of 4. 18 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (MTSI: +795. 9%, AXTI: +33. 6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: AXTI is a small-cap quality compounder stock; MTSI is a mid-cap high-growth stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.