MaxLinear (NASDAQ:MXL) and Monolithic Power Systems (NASDAQ:MPWR) Head-To-Head Survey

MaxLinear (NASDAQ:MXL) and Monolithic Power Systems (NASDAQ:MPWR) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MaxLinear	-61.63%	-21.86%	-13.30%
Monolithic Power Systems	76.59%	19.80%	16.79%

Valuation and Earnings

This table compares MaxLinear and Monolithic Power Systems”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MaxLinear	$360.53 million	3.39	-$245.20 million	($2.63)	-5.49
Monolithic Power Systems	$2.21 billion	16.40	$1.79 billion	$37.67	20.07

Monolithic Power Systems has higher revenue and earnings than MaxLinear. MaxLinear 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.

Volatility and Risk

MaxLinear has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500. Comparatively, Monolithic Power Systems has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MaxLinear	0	5	4	0	2.44
Monolithic Power Systems	0	2	10	0	2.83

MaxLinear presently has a consensus target price of $19.06, suggesting a potential upside of 31.93%. Monolithic Power Systems has a consensus target price of $789.42, suggesting a potential upside of 4.42%. Given MaxLinear’s higher possible upside, analysts clearly believe MaxLinear is more favorable than Monolithic Power Systems.

Institutional and Insider Ownership

90.8% of MaxLinear shares are owned by institutional investors. Comparatively, 93.5% of Monolithic Power Systems shares are owned by institutional investors. 7.8% of MaxLinear shares are owned by company insiders. Comparatively, 3.4% of Monolithic Power Systems shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Monolithic Power Systems beats MaxLinear on 11 of the 14 factors compared between the two stocks.

About MaxLinear

MaxLinear, Inc. provides communications systems-on-chip solutions worldwide. Its products integrate various portions of a high-speed communication system, including radio frequency, high-performance analog, mixed-signal, digital signal processing, security engines, data compression and networking layers, and power management. The company's products are used in various electronic devices, such as radio transceivers and modems for 4G/5G base-station and backhaul infrastructure; optical transceivers targeting hyperscale data centers; Wi-Fi and wireline routers for home networking; broadband modems compliant with data over cable service interface specifications, passive optical fiber standards, and digital subscriber line, as well as power management and interface products. It serves electronics distributors, module makers, original equipment manufacturers, and original design manufacturers through a direct sales force, third-party sales representatives, and a network of distributors. The company was incorporated in 2003 and is headquartered in Carlsbad, California.

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.