Monolithic Power Systems (NASDAQ: MPWR) and Siliconware Precision Industries (NASDAQ:SPIL) are both mid-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.
Institutional and Insider Ownership
93.9% of Monolithic Power Systems shares are held by institutional investors. Comparatively, 2.7% of Siliconware Precision Industries shares are held by institutional investors. 4.0% of Monolithic Power Systems shares are held by company insiders. Comparatively, 14.3% of Siliconware Precision Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This table compares Monolithic Power Systems and Siliconware Precision Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Monolithic Power Systems||15.66%||15.40%||12.91%|
|Siliconware Precision Industries||9.79%||12.42%||6.68%|
Monolithic Power Systems pays an annual dividend of $0.80 per share and has a dividend yield of 0.7%. Siliconware Precision Industries pays an annual dividend of $0.21 per share and has a dividend yield of 2.5%. Monolithic Power Systems pays out 49.7% of its earnings in the form of a dividend. Siliconware Precision Industries pays out 58.3% 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.
Earnings and Valuation
This table compares Monolithic Power Systems and Siliconware Precision Industries’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Monolithic Power Systems||$388.67 million||12.50||$52.72 million||$1.61||72.65|
|Siliconware Precision Industries||$2.64 billion||1.95||$302.68 million||$0.36||22.97|
Siliconware Precision Industries has higher revenue and earnings than Monolithic Power Systems. Siliconware Precision Industries 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.
This is a summary of current recommendations for Monolithic Power Systems and Siliconware Precision Industries, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Monolithic Power Systems||0||0||7||0||3.00|
|Siliconware Precision Industries||0||0||0||0||N/A|
Monolithic Power Systems presently has a consensus price target of $127.71, indicating a potential upside of 9.19%. Given Monolithic Power Systems’ higher probable upside, equities research analysts clearly believe Monolithic Power Systems is more favorable than Siliconware Precision Industries.
Volatility and Risk
Monolithic Power Systems has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Siliconware Precision Industries has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500.
Monolithic Power Systems beats Siliconware Precision Industries on 11 of the 15 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. The Company operates in the design, development, marketing and sale of power solutions for the communications, storage and computing, consumer and industrial markets segment. The Company’s product families include Direct Current (DC) to DC Products, and Lighting Control Products. The Company’s DC to DC integrated circuits (ICs) are used to convert and control voltages within a range of electronic systems, such as portable electronic devices, wireless local area network (LAN) access points, computers, monitors, automobiles and medical equipment. Lighting control ICs are used in backlighting and general illumination products. In addition to Alternating Current (AC)/DC offline solutions for lighting illumination applications, the Company also offers AC/DC power conversion solutions for end products that plug into a wall outlet.
About Siliconware Precision Industries
Siliconware Precision Industries Co., Ltd. is a Taiwan-based company mainly engaged in the provision of packaging and testing services of integrated circuits (ICs) and related products. The Company’s businesses include the manufacture, processing, assembly, testing and importing and exporting of ICs, transistors, light emitting diode (LED) digital displays, LED lights, liquid crystal display (LCD) clock cores, phototransistors, synthesis circuits, as well as thin film circuits and thick film circuits. The Company’s packaging businesses focus on IC products, including plastic small size ICs and plastic square planar ICs, among others. Its testing businesses mainly include final testing businesses and system level testing businesses, among others.
Receive News & Ratings for Monolithic Power Systems Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Monolithic Power Systems Inc. and related companies with MarketBeat.com's FREE daily email newsletter.