Head to Head Comparison: Monolithic Power Systems (NASDAQ:MPWR) vs. TOKYO ELECTRON/ADR (NASDAQ:TOELY)
Monolithic Power Systems (NASDAQ:MPWR) and TOKYO ELECTRON/ADR (OTCMKTS:TOELY) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.
Monolithic Power Systems pays an annual dividend of $1.60 per share and has a dividend yield of 1.3%. TOKYO ELECTRON/ADR pays an annual dividend of $1.23 per share and has a dividend yield of 3.7%. Monolithic Power Systems pays out 66.9% of its earnings in the form of a dividend. TOKYO ELECTRON/ADR pays out 42.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Monolithic Power Systems has increased its dividend for 4 consecutive years. TOKYO ELECTRON/ADR is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Monolithic Power Systems and TOKYO ELECTRON/ADR’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Monolithic Power Systems||$582.38 million||9.19||$105.27 million||$2.39||51.99|
|TOKYO ELECTRON/ADR||$10.21 billion||2.14||$1.92 billion||$2.88||11.49|
TOKYO ELECTRON/ADR has higher revenue and earnings than Monolithic Power Systems. TOKYO ELECTRON/ADR 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
Monolithic Power Systems has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500. Comparatively, TOKYO ELECTRON/ADR has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Monolithic Power Systems and TOKYO ELECTRON/ADR, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Monolithic Power Systems||0||1||5||0||2.83|
Monolithic Power Systems currently has a consensus price target of $151.29, indicating a potential upside of 21.76%. Given Monolithic Power Systems’ stronger consensus rating and higher possible upside, research analysts clearly believe Monolithic Power Systems is more favorable than TOKYO ELECTRON/ADR.
This table compares Monolithic Power Systems and TOKYO ELECTRON/ADR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Monolithic Power Systems||18.43%||17.99%||14.44%|
Institutional and Insider Ownership
96.0% of Monolithic Power Systems shares are owned by institutional investors. 3.0% of Monolithic Power Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Monolithic Power Systems beats TOKYO ELECTRON/ADR on 9 of the 17 factors compared between the two stocks.
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.
About TOKYO ELECTRON/ADR
Tokyo Electron Limited, together with its subsidiaries, develops, manufactures, distributes, and sells semiconductor and flat panel display (FPD) production equipment in Japan, North America, Europe, South Korea, Taiwan, China, and internationally. The company's Semiconductor Production Equipment segment offers coaters/developers, plasma etch systems, and single wafer deposition systems and cleaning systems used in wafer processing; wafer probers used in wafer testing process; and electrochemical deposition systems and wafer bonders/debonders used in packaging processes. Its Flat Panel Display Production Equipment segment provides coaters/developers and plasma etch/ash systems for use in the manufacture of FPDs, as well as inkjet printing systems for manufacturing OLED panels. The company also offers logistic, facility maintenance, and insurance services. Tokyo Electron Limited was founded in 1963 and is headquartered in Tokyo, Japan.
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