Monolithic Power Systems (NASDAQ:MPWR – Get Free Report) and MaxLinear (NASDAQ:MXL – Get Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.
Profitability
This table compares Monolithic Power Systems and MaxLinear’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Monolithic Power Systems | 73.17% | 19.14% | 16.34% |
| MaxLinear | -55.53% | -18.16% | -10.73% |
Analyst Recommendations
This is a breakdown of current ratings and price targets for Monolithic Power Systems and MaxLinear, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Monolithic Power Systems | 0 | 2 | 9 | 0 | 2.82 |
| MaxLinear | 0 | 5 | 4 | 0 | 2.44 |
Earnings and Valuation
This table compares Monolithic Power Systems and MaxLinear”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Monolithic Power Systems | $2.21 billion | 17.42 | $1.79 billion | $38.40 | 20.91 |
| MaxLinear | $360.53 million | 3.65 | -$245.20 million | ($2.47) | -6.12 |
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.
Institutional and Insider Ownership
93.5% of Monolithic Power Systems shares are owned by institutional investors. Comparatively, 90.8% of MaxLinear shares are owned by institutional investors. 3.4% of Monolithic Power Systems shares are owned by insiders. Comparatively, 7.8% of MaxLinear shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
Monolithic Power Systems has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, MaxLinear has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500.
Summary
Monolithic Power Systems beats MaxLinear on 11 of the 14 factors compared between the two stocks.
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.
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.
Receive News & Ratings for Monolithic Power Systems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Monolithic Power Systems and related companies with MarketBeat.com's FREE daily email newsletter.
