Head-To-Head Analysis: Monolithic Power Systems (MPWR) vs. The Competition

Monolithic Power Systems (NASDAQ:MPWR) is one of 220 public companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it compare to its peers? We will compare Monolithic Power Systems to similar companies based on the strength of its earnings, profitability, valuation, institutional ownership, dividends, analyst recommendations and risk.

Dividends

Monolithic Power Systems pays an annual dividend of $8.00 per share and has a dividend yield of 0.6%. Monolithic Power Systems pays out 44.2% of its earnings in the form of a dividend. As a group, “Semiconductors & Semiconductor Equipment” companies pay a dividend yield of 0.9% and pay out 29.5% of their earnings in the form of a dividend. Monolithic Power Systems has raised its dividend for 8 consecutive years. Monolithic Power Systems lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Volatility & Risk

Monolithic Power Systems has a beta of 1.71, indicating that its stock price is 71% more volatile than the S&P 500. Comparatively, Monolithic Power Systems’ peers have a beta of 2.81, indicating that their average stock price is 181% more volatile than the S&P 500.

Profitability

This table compares Monolithic Power Systems and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Monolithic Power Systems	23.85%	25.23%	20.80%
Monolithic Power Systems Competitors	-1,255.44%	-126.13%	-3.87%

Analyst Ratings

This is a summary of current ratings for Monolithic Power Systems and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Monolithic Power Systems	0	1	14	1	3.00
Monolithic Power Systems Competitors	3513	12390	25840	1004	2.57

Monolithic Power Systems currently has a consensus target price of $1,783.77, suggesting a potential upside of 23.54%. As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 37.85%. Given Monolithic Power Systems’ peers higher possible upside, analysts clearly believe Monolithic Power Systems has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares Monolithic Power Systems and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Monolithic Power Systems	$2.79 billion	$621.48 million	79.73
Monolithic Power Systems Competitors	$1,259.17 billion	$2.53 billion	8.52

Monolithic Power Systems’ peers have higher revenue and earnings than Monolithic Power Systems. Monolithic Power Systems is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

93.5% of Monolithic Power Systems shares are held by institutional investors. Comparatively, 54.7% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by institutional investors. 3.6% of Monolithic Power Systems shares are held by insiders. Comparatively, 11.8% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Monolithic Power Systems beats its peers on 8 of the 15 factors compared.

About Monolithic Power Systems

Monolithic Power Systems, Inc. (MPS) designs, develops and markets semiconductor-based power management solutions. Its products include power management integrated circuits, DC-to-DC converters, power modules, battery chargers, LED drivers and motor drivers, which help control and convert electrical power in electronic systems. The company’s products serve a range of markets, including computing and data storage, automotive, communications, consumer electronics and industrial applications. MPS sells to customers around the world through direct sales and distribution channels.