Monolithic Power Systems (MPWR) Competitors

Monolithic Power Systems (NASDAQ:MPWR) and Applied Materials (NASDAQ:AMAT) are both large-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, media sentiment, valuation, earnings, analyst recommendations, dividends, institutional ownership and risk.

Is MPWR or AMAT a better dividend stock?

Monolithic Power Systems pays an annual dividend of $6.24 per share and has a dividend yield of 0.8%. Applied Materials pays an annual dividend of $1.84 per share and has a dividend yield of 1.0%. Monolithic Power Systems pays out 16.6% of its earnings in the form of a dividend. Applied Materials pays out 22.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Monolithic Power Systems has increased its dividend for 8 consecutive years and Applied Materials has increased its dividend for 8 consecutive years.

Is MPWR or AMAT more profitable?

Monolithic Power Systems has a net margin of 76.59% compared to Applied Materials' net margin of 24.06%. Applied Materials' return on equity of 40.15% beat Monolithic Power Systems' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Monolithic Power Systems	76.59%	19.80%	16.79%
Applied Materials	24.06%	40.15%	22.42%

Which has more volatility and risk, MPWR or AMAT?

Monolithic Power Systems has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, Applied Materials has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500.

Do insiders and institutionals have more ownership in MPWR or AMAT?

93.5% of Monolithic Power Systems shares are owned by institutional investors. Comparatively, 80.6% of Applied Materials shares are owned by institutional investors. 3.4% of Monolithic Power Systems shares are owned by insiders. Comparatively, 0.2% of Applied Materials shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Which has preferable valuation and earnings, MPWR or AMAT?

Applied Materials has higher revenue and earnings than Monolithic Power Systems. Monolithic Power Systems is trading at a lower price-to-earnings ratio than Applied Materials, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Monolithic Power Systems	$2.21B	16.47	$1.79B	$37.67	20.15
Applied Materials	$27.18B	5.64	$7.18B	$8.22	23.22

Do analysts rate MPWR or AMAT?

Monolithic Power Systems currently has a consensus target price of $789.42, indicating a potential upside of 4.01%. Applied Materials has a consensus target price of $200.76, indicating a potential upside of 5.19%. Given Applied Materials' higher possible upside, analysts clearly believe Applied Materials is more favorable than Monolithic Power Systems.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Monolithic Power Systems	0 Sell rating(s)	2 Hold rating(s)	10 Buy rating(s)	0 Strong Buy rating(s)	2.83
Applied Materials	0 Sell rating(s)	6 Hold rating(s)	16 Buy rating(s)	0 Strong Buy rating(s)	2.73

Does the media prefer MPWR or AMAT?

In the previous week, Applied Materials had 16 more articles in the media than Monolithic Power Systems. MarketBeat recorded 47 mentions for Applied Materials and 31 mentions for Monolithic Power Systems. Monolithic Power Systems' average media sentiment score of 1.30 beat Applied Materials' score of 1.25 indicating that Monolithic Power Systems is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Monolithic Power Systems	23 Very Positive mention(s)	1 Positive mention(s)	6 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Applied Materials	35 Very Positive mention(s)	2 Positive mention(s)	8 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Summary

Applied Materials beats Monolithic Power Systems on 10 of the 18 factors compared between the two stocks.