Head-To-Head Review: Semiconductor Manufacturing International (OTCMKTS:SMICY) and Monolithic Power Systems (NASDAQ:MPWR)

Semiconductor Manufacturing International (OTCMKTS:SMICY) and Monolithic Power Systems (NASDAQ:MPWR) are both large-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Semiconductor Manufacturing International	14.53%	4.00%	2.62%
Monolithic Power Systems	80.95%	20.36%	17.07%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Semiconductor Manufacturing International and Monolithic Power Systems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Semiconductor Manufacturing International	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, suggesting a potential upside of 11.93%. Given Monolithic Power Systems’ stronger consensus rating and higher probable upside, analysts plainly believe Monolithic Power Systems is more favorable than Semiconductor Manufacturing International.

Earnings & Valuation

This table compares Semiconductor Manufacturing International and Monolithic Power Systems”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Semiconductor Manufacturing International	$3.12 billion	5.18	$234.68 million	$0.21	66.67
Monolithic Power Systems	$2.39 billion	13.98	$1.79 billion	$37.67	18.50

Monolithic Power Systems has lower revenue, but higher earnings than Semiconductor Manufacturing International. Monolithic Power Systems is trading at a lower price-to-earnings ratio than Semiconductor Manufacturing International, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

0.0% of Semiconductor Manufacturing International shares are held by institutional investors. Comparatively, 93.5% of Monolithic Power Systems shares are held by institutional investors. 3.4% of Monolithic Power Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Semiconductor Manufacturing International has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, Monolithic Power Systems has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500.

Summary

Monolithic Power Systems beats Semiconductor Manufacturing International on 12 of the 14 factors compared between the two stocks.

About Semiconductor Manufacturing International

Semiconductor Manufacturing International Corporation, an investment holding company, engages in the computer-aided design, manufacture, testing, packaging, and trading of integrated circuits (IC) and other semiconductor services. It is also involved in wafer manufacturing, wafer probing and bumping, technology development, design service, mask manufacturing, and assembly and final testing of integrated circuits; and sale of self-manufactured products. In addition, the company designs and manufactures semiconductor masks; and offers marketing related services. It operates in North America, China, Hong Kong, and Eurasia. The company serves integrated device manufacturers, fabless semiconductor companies, and system companies. Semiconductor Manufacturing International Corporation was founded in 2000 and is headquartered in Shanghai, the People's Republic of China.

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.