NVE (NASDAQ:NVEC) and Monolithic Power Systems (NASDAQ:MPWR) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, valuation, institutional ownership and dividends.
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%|
NVE has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, Monolithic Power Systems has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500.
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.
Earnings & Valuation
This table compares NVE and Monolithic Power Systems’ 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|
Monolithic Power Systems has higher revenue and earnings than NVE.
Institutional & Insider Ownership
75.1% of NVE shares are held by institutional investors. Comparatively, 95.0% of Monolithic Power Systems shares are held by institutional investors. 2.3% of NVE shares are held by company insiders. Comparatively, 3.0% of Monolithic Power Systems shares are held by company 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.
This is a summary of current ratings for NVE and Monolithic Power Systems, as reported by MarketBeat.com.
|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 price target of $150.67, indicating a potential downside of 2.43%. Given Monolithic Power Systems’ higher possible upside, analysts clearly believe Monolithic Power Systems is more favorable than NVE.
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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