Acacia Communications (NASDAQ:ACIA) and Monolithic Power Systems (NASDAQ:MPWR) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, valuation, risk and earnings.
Institutional & Insider Ownership
85.6% of Acacia Communications shares are owned by institutional investors. Comparatively, 93.3% of Monolithic Power Systems shares are owned by institutional investors. 9.3% of Acacia Communications shares are owned by company insiders. Comparatively, 3.0% of Monolithic Power Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Risk and Volatility
Acacia Communications has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, Monolithic Power Systems has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.
Earnings & Valuation
This table compares Acacia Communications and Monolithic Power Systems' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Acacia Communications | $464.66 million | 10.54 | $32.84 million | $1.18 | 97.40 |
Monolithic Power Systems | $627.92 million | 26.04 | $108.84 million | $2.53 | 143.32 |
Monolithic Power Systems has higher revenue and earnings than Acacia Communications. Acacia Communications 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.
Profitability
This table compares Acacia Communications and Monolithic Power Systems' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Acacia Communications | 12.56% | 11.85% | 9.53% |
Monolithic Power Systems | 19.78% | 17.95% | 14.33% |
Analyst Ratings
This is a breakdown of current ratings and target prices for Acacia Communications and Monolithic Power Systems, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Acacia Communications | 0 | 4 | 1 | 0 | 2.20 |
Monolithic Power Systems | 0 | 0 | 10 | 0 | 3.00 |
Acacia Communications currently has a consensus target price of $106.6667, suggesting a potential downside of 7.19%. Monolithic Power Systems has a consensus target price of $370.00, suggesting a potential upside of 2.04%. Given Monolithic Power Systems' stronger consensus rating and higher probable upside, analysts plainly believe Monolithic Power Systems is more favorable than Acacia Communications.
Summary
Monolithic Power Systems beats Acacia Communications on 13 of the 14 factors compared between the two stocks.