Monolithic Power Systems (NASDAQ:MPWR) & Cohu (NASDAQ:COHU) Head to Head Contrast

Cohu (NASDAQ:COHU) and Monolithic Power Systems (NASDAQ:MPWR) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, valuation, analyst recommendations, risk, earnings, dividends and institutional ownership.

Risk & Volatility

Cohu has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500. Comparatively, Monolithic Power Systems has a beta of 1.66, meaning that its share price is 66% more volatile than the S&P 500.

Insider and Institutional Ownership

94.7% of Cohu shares are held by institutional investors. Comparatively, 93.5% of Monolithic Power Systems shares are held by institutional investors. 3.0% of Cohu shares are held by company insiders. Comparatively, 3.6% of Monolithic Power Systems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Cohu and Monolithic Power Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cohu	1	1	7	1	2.80
Monolithic Power Systems	0	2	12	1	2.93

Cohu currently has a consensus target price of $68.75, suggesting a potential upside of 13.41%. Monolithic Power Systems has a consensus target price of $1,731.42, suggesting a potential upside of 35.51%. Given Monolithic Power Systems’ stronger consensus rating and higher probable upside, analysts plainly believe Monolithic Power Systems is more favorable than Cohu.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cohu	-7.43%	-1.96%	-1.30%
Monolithic Power Systems	24.41%	22.31%	18.67%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cohu	$452.96 million	6.34	-$74.27 million	($0.83)	-73.04
Monolithic Power Systems	$2.79 billion	22.50	$621.48 million	$16.31	78.34

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

Summary

Monolithic Power Systems beats Cohu on 13 of the 14 factors compared between the two stocks.

About Cohu

Cohu, Inc., through its subsidiaries, provides semiconductor test equipment and services in China, the United States, Taiwan, Malaysia, the Philippines, and internationally. The company supplies semiconductor test and inspection handlers, micro-electromechanical system (MEMS) test modules, test contactors, thermal sub-systems, and semiconductor automated test equipment for semiconductor manufacturers and test subcontractors. It also provides semiconductor automated test equipment for wafer level and device package testing; various test handlers, including pick-and-place, turret, gravity, strip, and MEMS and thermal sub-systems; interface products comprising test contactors, and probe heads and pins; spares and kits; various parts and labor warranties on test and handling systems, and instruments; and training on the maintenance and operation of its systems, as well as application, data management software, and consulting services on its products. In addition, the company offers data analytics product that includes DI-Core, a software suite used to optimize Cohu equipment performance, which provides real-time online performance monitoring and process control. It markets its products through direct sales force and independent sales representatives. The company was formerly known as Cohu Electronics, Inc. and changed its name to Cohu, Inc. in 1972. The company was incorporated in 1947 and is headquartered in Poway, 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.