On Track Innovations (OTCMKTS:OTIVF) & Monolithic Power Systems (NASDAQ:MPWR) Financial Analysis

On Track Innovations (OTCMKTS:OTIVF) and Monolithic Power Systems (NASDAQ:MPWR) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.

Profitability

This table compares On Track Innovations and Monolithic Power Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
On Track Innovations	-63.06%	-1,110.80%	-62.59%
Monolithic Power Systems	80.95%	20.36%	17.07%

Insider and Institutional Ownership

33.6% of On Track Innovations shares are held by institutional investors. Comparatively, 93.5% of Monolithic Power Systems shares are held by institutional investors. 8.0% of On Track Innovations shares are held by insiders. Comparatively, 3.4% of Monolithic Power Systems shares 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.

Valuation and Earnings

This table compares On Track Innovations and Monolithic Power Systems”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
On Track Innovations	$14.88 million	0.00	-$11.66 million	N/A	N/A
Monolithic Power Systems	$2.39 billion	13.59	$1.79 billion	$37.67	17.98

Monolithic Power Systems has higher revenue and earnings than On Track Innovations.

Analyst Recommendations

This is a breakdown of recent ratings for On Track Innovations and Monolithic Power Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
On Track Innovations	0	0	0	0	0.00
Monolithic Power Systems	0	2	10	0	2.83

Monolithic Power Systems has a consensus price target of $779.83, indicating a potential upside of 15.11%. Given Monolithic Power Systems’ stronger consensus rating and higher possible upside, analysts plainly believe Monolithic Power Systems is more favorable than On Track Innovations.

Risk and Volatility

On Track Innovations has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, Monolithic Power Systems has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500.

Summary

Monolithic Power Systems beats On Track Innovations on 10 of the 11 factors compared between the two stocks.

About On Track Innovations

On Track Innovations Ltd., together with its subsidiaries, designs, develops, and markets cashless payment solutions worldwide. It operates in two segments, Retail and Petroleum. The company's product portfolio includes readers, controllers and terminals, management software, payment services, and Payment System as a Service (PSaaS). It offers OtiMetry System that incorporates telemetry, sales, and operations into solution with cloud control, and real-time online management and alerts; TRIO-IQ, a telemetry gateway and EMV payment reader; TRIO, a payment device for installation in kiosks and vending machines; UNO-8 and UNO-PLUS contactless readers for unattended retail environments with self-service payment stations, including ATMs, toll roads, access control, and mass transit validators; and controllers and gateways comprises OTI TeleBox, a machine-to-machine controller that enables the communication between machines, and GoBox, a machine-to-machine controller that communicates between machines, cashless readers, and remote servers. The company also provides a terminal management system, which is a cloud-based system that provides real-time control and insights of each machine enabling operators to remotely manage their terminal's fleet; and cloud based vending management system and vending BI. In addition, it offers payment services, including payment service API, an application programming interface; close loop payment that supports close-loop payment cards; and APIs for integration with mobile payment solutions, as well as original equipment manufacturer (OEM) payment solutions. The company's readers are certified by various card associations and support Apple Pay, Google Pay, Samsung Pay, MIFARE, FeliCa, and others. The company was formerly known as De-Bug Innovations Ltd. and changed its name to On Track Innovations Ltd. in July 1991. On Track Innovations Ltd. was incorporated in 1990 and is headquartered in Yokneam Illit, Israel.

About Monolithic Power Systems

Monolithic Power Systems, Inc. engages in the design, development, marketing, and sale of semiconductor-based power electronics solutions for the storage and computing, automotive, enterprise data, consumer, communications, and industrial markets. The company provides direct current (DC) to DC integrated circuits (ICs) that are used to convert and control voltages of various electronic systems, such as cloud-based CPU servers, server artificial intelligence applications, storage applications, commercial notebooks, digital cockpit, power sources, home appliances, 4G and 5G infrastructure, and satellite communications applications. It offers lighting control ICs for backlighting that are used in systems, which provide the light source for LCD panels in computers and notebooks, monitors, car navigation systems, and televisions, as well as for general illumination products. The company sells its products through third-party distributors, value-added resellers, directly to original equipment manufacturers, original design manufacturers, electronic manufacturing service providers, and other end customers. It serves China, Taiwan, South Korea, Europe, Japan, Southeast Asia, the United States, and internationally. Monolithic Power Systems, Inc. was incorporated in 1997 and is headquartered in Kirkland, Washington.