Cirrus Logic (NASDAQ:CRUS) and Monolithic Power Systems (NASDAQ:MPWR) Financial Comparison

Cirrus Logic (NASDAQ:CRUSGet Free Report) and Monolithic Power Systems (NASDAQ:MPWRGet Free Report) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Volatility and Risk

Cirrus Logic has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Monolithic Power Systems has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Cirrus Logic 15.35% 16.49% 13.37%
Monolithic Power Systems 22.44% 21.01% 17.47%

Analyst Ratings

This is a breakdown of current ratings and price targets for Cirrus Logic and Monolithic Power Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cirrus Logic 0 1 6 0 2.86
Monolithic Power Systems 0 1 8 0 2.89

Cirrus Logic currently has a consensus target price of $107.86, indicating a potential downside of 14.06%. Monolithic Power Systems has a consensus target price of $766.00, indicating a potential downside of 7.42%. Given Monolithic Power Systems’ stronger consensus rating and higher probable upside, analysts plainly believe Monolithic Power Systems is more favorable than Cirrus Logic.

Insider & Institutional Ownership

88.0% of Cirrus Logic shares are owned by institutional investors. Comparatively, 93.5% of Monolithic Power Systems shares are owned by institutional investors. 1.0% of Cirrus Logic shares are owned by insiders. Comparatively, 3.2% of Monolithic Power Systems shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Cirrus Logic and Monolithic Power Systems’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cirrus Logic $1.79 billion 3.75 $274.57 million $4.93 25.46
Monolithic Power Systems $1.82 billion 22.12 $427.37 million $8.39 98.62

Monolithic Power Systems has higher revenue and earnings than Cirrus Logic. Cirrus Logic 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 Cirrus Logic on 14 of the 14 factors compared between the two stocks.

About Cirrus Logic

(Get Free Report)

Cirrus Logic, Inc., a fabless semiconductor company, develops low-power high-precision mixed-signal processing solutions in China, the United States, and internationally. The company offers audio products, including amplifiers; codecs components that integrate analog-to-digital converters (ADCs) and digital-to-analog converters (DACs) into a single integrated circuit (IC); smart codecs, a codec with integrated digital signal processing; standalone digital signal processors; and SoundClear technology, which consists of a portfolio of tools, software, and algorithms that helps to enhance user experience with features, such as louder, high-fidelity sound, audio playback, voice capture, and hearing augmentation for use in smartphones, tablets, laptops, AR/VR headsets, home theater systems, automotive entertainment systems, and professional audio systems. It also provides high-performance mixed-signal products comprising camera controllers, haptic and sensing solutions, and battery and power ICs for use in smartphones, as well as legacy industrial and energy applications, such as digital utility meters, power supplies, energy control, energy measurement, and energy exploration. The company markets and sells its products through direct sales force, external sales representatives, and distributors. Cirrus Logic, Inc. was incorporated in 1984 and is headquartered in Austin, Texas.

About Monolithic Power Systems

(Get Free Report)

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.

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