NVE (NASDAQ:NVEC) and Monolithic Power Systems (NASDAQ:MPWR) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, institutional ownership, analyst recommendations, earnings and profitability.
Earnings and Valuation
This table compares NVE and Monolithic Power Systems’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NVE||$26.47 million||12.44||$14.51 million||N/A||N/A|
|Monolithic Power Systems||$582.38 million||11.47||$105.27 million||$2.39||64.61|
This table compares NVE and Monolithic Power Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Monolithic Power Systems||17.51%||16.60%||13.36%|
Risk and Volatility
NVE has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500. Comparatively, Monolithic Power Systems has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for NVE and Monolithic Power Systems, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Monolithic Power Systems||0||1||5||0||2.83|
Monolithic Power Systems has a consensus target price of $150.67, indicating a potential downside of 2.43%. Given Monolithic Power Systems’ higher probable upside, analysts clearly believe Monolithic Power Systems is more favorable than NVE.
Insider and Institutional Ownership
75.1% of NVE shares are owned by institutional investors. Comparatively, 95.0% of Monolithic Power Systems shares are owned by institutional investors. 2.3% of NVE shares are owned by insiders. Comparatively, 3.0% of Monolithic Power Systems shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
NVE pays an annual dividend of $4.00 per share and has a dividend yield of 5.9%. Monolithic Power Systems pays an annual dividend of $1.60 per share and has a dividend yield of 1.0%. Monolithic Power Systems pays out 66.9% of its earnings in the form of a dividend. Monolithic Power Systems has increased its dividend for 4 consecutive years.
Monolithic Power Systems beats NVE on 9 of the 15 factors compared between the two stocks.
NVE Corporation develops and sells devices that use spintronics, a nanotechnology that utilizes electron spin to acquire, store, and transmit information. The company manufactures spintronic products, including sensors and couplers for use in acquiring and transmitting data. Its products comprise standard sensors to detect the presence of a magnetic or metallic material to determine position or speed primarily for the factory automation market; and custom and medical sensors for medical devices to replace electromechanical magnetic switches. The company also offers spintronic couplers, such as IL500-series couplers, IL600-series passive-input couplers, IL700/IL200-series high-speed couplers, IL4/IL3-series isolated network couplers, and IL800-series top-of-the-line couplers. In addition, it licenses the spintronic magnetoresistive random access memory technology, as well as conducts contract research and development activities. The company sells its products through distributors in the United States, Europe, the Middle East, Africa, Asia-Pacific, and internationally. NVE Corporation was founded in 1989 and is headquartered in Eden Prairie, Minnesota.
About Monolithic Power Systems
Monolithic Power Systems, Inc. designs, develops, and markets integrated power semiconductor solutions and power delivery architectures for consumer, computing and storage, industrial, automotive, and communications markets. It offers direct current (DC) to DC integrated circuits (ICs) that are used to convert and control voltages of various electronic systems, such as portable electronic devices, wireless LAN access points, computers, monitors, automobiles, and medical equipment. The company also provides lighting control ICs for backlighting that are used in systems, which provide the light source for LCD panels in notebook computers, monitors, car navigation systems, and televisions, as well as for general illumination applications. The company sells its products through third-party distributors, and resellers, as well as directly to original equipment manufacturers, original design manufacturers, and electronic manufacturing service providers in China, Taiwan, Europe, Korea, Southeast Asia, Japan, the United States, and internationally. Monolithic Power Systems, Inc. was founded in 1997 and is headquartered in Kirkland, Washington.
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