Monolithic Power Systems (NASDAQ:MPWR) versus Synaptics (NASDAQ:SYNA) Head-To-Head Analysis

Monolithic Power Systems (NASDAQ:MPWR) and Synaptics (NASDAQ:SYNA) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Insider and Institutional Ownership

93.5% of Monolithic Power Systems shares are owned by institutional investors. Comparatively, 99.4% of Synaptics shares are owned by institutional investors. 3.2% of Monolithic Power Systems shares are owned by insiders. Comparatively, 1.2% of Synaptics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Monolithic Power Systems	23.47%	22.66%	18.72%
Synaptics	-7.54%	3.01%	1.44%

Risk and Volatility

Monolithic Power Systems has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500. Comparatively, Synaptics has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500.

Valuation & Earnings

This table compares Monolithic Power Systems and Synaptics’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Monolithic Power Systems	$1.82 billion	17.28	$427.37 million	$8.76	73.82
Synaptics	$1.03 billion	3.36	$73.60 million	($1.99)	-44.19

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Monolithic Power Systems and Synaptics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Monolithic Power Systems	0	1	8	0	2.89
Synaptics	0	2	7	0	2.78

Monolithic Power Systems currently has a consensus price target of $670.30, suggesting a potential upside of 3.66%. Synaptics has a consensus price target of $125.36, suggesting a potential upside of 42.56%. Given Synaptics’ higher probable upside, analysts clearly believe Synaptics is more favorable than Monolithic Power Systems.

Summary

Monolithic Power Systems beats Synaptics on 11 of the 14 factors compared between the two stocks.

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.

About Synaptics

Synaptics Incorporated develops, markets, and sells semiconductor products worldwide. The company offers AudioSmart for voice and audio processing; ConnectSmart for high-speed video/audio/data connectivity; DisplayLink for transmitting compressed video frames across low bandwidth connections; VideoSmart that enables set-top boxes, over-the-top, streaming devices, soundbars, surveillance cameras, and smart displays; and ImagingSmart solutions. It also provides Natural ID, a fingerprint ID product that is used in notebook personal computers (PCs), PC peripherals, automobiles, and other applications; TouchPad, a touch-sensitive pad that senses the position and movement of one or more fingers on its surface; SecurePad that integrates fingerprint sensor directly into the TouchPad area; ClickPad that offers a clickable mechanical design; and ForcePad. In addition, the company offers ClearPad, which enables users to interact directly with the display on mobile smartphones, tablets, and automobiles; ClearView products that provide advanced image processing and low power technology for displays on smartphones and tablets; and TouchView products, a touch controller and display driver integration product. Further, it provides TouchPad with a pointing stick in a single notebook computer enabling users to select their interface of choice; TouchStyk, a self-contained pointing stick module; ultra-low power edge artificial intelligence platform for battery powered wireless devices; wireless connectivity solutions comprising Wi-Fi, Bluetooth, global positioning system, global navigation satellite system, and ULE; and voice over IP and digital enhanced cordless telecommunications solutions. The company sells its products through direct sales, outside sales representatives, distributors, and resellers to mobile and PC OEMs; IoT OEMs; and automotive and consumer electronics manufacturers. The company was incorporated in 1986 and is headquartered in San Jose, California.