Photronics (NASDAQ:PLAB – Get Free Report) and Monolithic Power Systems (NASDAQ:MPWR – Get Free Report) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, dividends, earnings, profitability, valuation, institutional ownership and risk.
Earnings & Valuation
This table compares Photronics and Monolithic Power Systems”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Photronics | $849.29 million | 1.94 | $136.40 million | $2.84 | 9.82 |
| Monolithic Power Systems | $2.79 billion | 25.30 | $621.48 million | $18.11 | 79.92 |
Monolithic Power Systems has higher revenue and earnings than Photronics. Photronics is trading at a lower price-to-earnings ratio than Monolithic Power Systems, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Photronics has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500. Comparatively, Monolithic Power Systems has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings for Photronics and Monolithic Power Systems, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Photronics | 0 | 2 | 3 | 1 | 2.83 |
| Monolithic Power Systems | 0 | 1 | 14 | 1 | 3.00 |
Photronics presently has a consensus target price of $49.33, suggesting a potential upside of 76.95%. Monolithic Power Systems has a consensus target price of $1,783.77, suggesting a potential upside of 23.24%. Given Photronics’ higher possible upside, equities analysts plainly believe Photronics is more favorable than Monolithic Power Systems.
Profitability
This table compares Photronics and Monolithic Power Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Photronics | 19.05% | 7.45% | 6.53% |
| Monolithic Power Systems | 23.85% | 25.23% | 20.80% |
Insider & Institutional Ownership
88.4% of Photronics shares are owned by institutional investors. Comparatively, 93.5% of Monolithic Power Systems shares are owned by institutional investors. 3.3% of Photronics shares are owned by insiders. Comparatively, 3.6% of Monolithic Power Systems shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
Monolithic Power Systems beats Photronics on 13 of the 14 factors compared between the two stocks.
About Photronics
Photronics, Inc. manufactures photomasks, high-precision plates used to transfer circuit patterns onto semiconductor wafers and flat-panel displays. Its products support the production of integrated circuits and display technologies. The company serves semiconductor and display manufacturers around the world, with operations across North America, Europe and Asia. Photronics traces its history to 1969, when it was established as Photronic Labs. Photronics is headquartered in Brookfield, Connecticut.
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.
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