Analyzing Monolithic Power Systems (MPWR) & Rubicon Technology (RBCN)
Monolithic Power Systems (NASDAQ: MPWR) and Rubicon Technology (NASDAQ:RBCN) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.
Volatility & Risk
Monolithic Power Systems has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500. Comparatively, Rubicon Technology has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500.
Monolithic Power Systems pays an annual dividend of $0.80 per share and has a dividend yield of 0.7%. Rubicon Technology does not pay a dividend. Monolithic Power Systems pays out 49.7% of its earnings in the form of a dividend.
This is a breakdown of current ratings and target prices for Monolithic Power Systems and Rubicon Technology, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Monolithic Power Systems||0||0||7||1||3.13|
Monolithic Power Systems presently has a consensus price target of $124.25, suggesting a potential upside of 2.01%. Given Monolithic Power Systems’ higher possible upside, analysts clearly believe Monolithic Power Systems is more favorable than Rubicon Technology.
Earnings & Valuation
This table compares Monolithic Power Systems and Rubicon Technology’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Monolithic Power Systems||$388.67 million||13.01||$52.72 million||$1.61||75.65|
|Rubicon Technology||$19.63 million||1.10||-$62.87 million||($21.96)||-0.36|
Monolithic Power Systems has higher revenue and earnings than Rubicon Technology. Rubicon Technology 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.
Insider & Institutional Ownership
93.3% of Monolithic Power Systems shares are held by institutional investors. Comparatively, 37.5% of Rubicon Technology shares are held by institutional investors. 4.0% of Monolithic Power Systems shares are held by company insiders. Comparatively, 12.1% of Rubicon Technology shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares Monolithic Power Systems and Rubicon Technology’s 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%|
Monolithic Power Systems beats Rubicon Technology on 13 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 Rubicon Technology
Rubicon Technology, Inc. is a vertically integrated, electronic materials provider specializing in monocrystalline sapphire for applications in light-emitting diodes (LEDs), optical systems and specialty electronic devices. The Company’s product lines include sapphire cores; four and six-inch sapphire wafers; four, six, and eight-inch patterned sapphire substrate (PSS) wafers, and optical sapphire components. Its sapphire is also used as an exterior component in mobile devices, specifically camera lens covers, dual flashes and home buttons on certain newer model smartphones and as the crystal covering the faces of certain smart watches. In addition, some consumer electronics original equipment manufacturers (OEMs) use sapphire faceplates for smartphones. For the LED market, it sells 2 to 6-inch material in core form and four, six and eight-inch material in polished and PSS wafer form. Its principal customers are semiconductor device manufacturers and wafer polishing companies.
Receive News & Stock 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 stocks with our FREE daily email newsletter.