Critical Survey: Hittite Microwave (HITT) versus Monolithic Power Systems (MPWR)
Hittite Microwave (NASDAQ: HITT) and Monolithic Power Systems (NASDAQ:MPWR) are both technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.
This table compares Hittite Microwave and Monolithic Power Systems’ 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%|
93.9% of Monolithic Power Systems shares are owned by institutional investors. 4.0% 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 company will outperform the market over the long term.
This is a breakdown of recent ratings for Hittite Microwave and Monolithic Power Systems, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Monolithic Power Systems||0||0||7||0||3.00|
Monolithic Power Systems has a consensus price target of $127.71, suggesting a potential upside of 14.81%.
Earnings and Valuation
This table compares Hittite Microwave and Monolithic Power Systems’ top-line 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||11.88||$52.72 million||$1.61||69.09|
Monolithic Power Systems has higher revenue and earnings than Hittite Microwave. Hittite Microwave 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.
Monolithic Power Systems pays an annual dividend of $0.80 per share and has a dividend yield of 0.7%. Hittite Microwave does not pay a dividend. Monolithic Power Systems pays out 49.7% of its earnings in the form of a dividend.
Monolithic Power Systems beats Hittite Microwave on 8 of the 10 factors compared between the two stocks.
About Hittite Microwave
Hittite Microwave Corporation designs and develops integrated circuits (ICs), modules, subsystems and instrumentation for radio frequency (RF) microwave and millimeterwave applications. It offers a range of standard and custom ICs, modules, subsystems and instrumentation that perform a range of functions across the RF, microwave and millimeterwave frequency bands. It offers a range of radio frequency integrated circuits (RFICs), monolithic microwave integrated circuits (MMICs), multi-chip modules (MCMs), subsystems and instruments that perform a range of signal processing functions and that operate across the RF, microwave, millimeterwave and visible light frequency spectrum. In May 2014, the Company acquired Keragis Corporation. In July 2014, Analog Devices Inc acquired Hittite Microwave Corporation.
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.
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