Analyzing Navitas Semiconductor (NASDAQ:NVTS) and Monolithic Power Systems (NASDAQ:MPWR)

Navitas Semiconductor (NASDAQ:NVTS) and Monolithic Power Systems (NASDAQ:MPWR) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.

Risk & Volatility

Navitas Semiconductor has a beta of 2.36, meaning that its share price is 136% more volatile than the S&P 500. Comparatively, Monolithic Power Systems has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Navitas Semiconductor	-84.61%	-23.64%	-20.18%
Monolithic Power Systems	21.29%	20.44%	16.93%

Analyst Recommendations

This is a summary of current recommendations for Navitas Semiconductor and Monolithic Power Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Navitas Semiconductor	0	3	5	0	2.63
Monolithic Power Systems	0	2	9	0	2.82

Navitas Semiconductor presently has a consensus price target of $4.75, indicating a potential upside of 59.93%. Monolithic Power Systems has a consensus price target of $840.36, indicating a potential upside of 43.65%. Given Navitas Semiconductor’s higher possible upside, research analysts clearly believe Navitas Semiconductor is more favorable than Monolithic Power Systems.

Insider and Institutional Ownership

46.1% of Navitas Semiconductor shares are held by institutional investors. Comparatively, 93.5% of Monolithic Power Systems shares are held by institutional investors. 31.8% of Navitas Semiconductor shares are held by insiders. Comparatively, 3.7% of Monolithic Power Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Navitas Semiconductor and Monolithic Power Systems”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Navitas Semiconductor	$91.38 million	6.07	-$145.43 million	($0.42)	-7.07
Monolithic Power Systems	$1.82 billion	15.67	$427.37 million	$8.87	65.95

Monolithic Power Systems has higher revenue and earnings than Navitas Semiconductor. Navitas Semiconductor 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 Navitas Semiconductor on 11 of the 14 factors compared between the two stocks.

About Navitas Semiconductor

Navitas Semiconductor Corporation designs, develops, and markets gallium nitride power integrated circuits, silicon carbide, associated high-speed silicon system controllers, and digital isolators used in power conversion and charging. The company’s products are used in mobile, consumer, data center, solar, electric vehicle, industrial motor drive, smart grid, and transportation applications. It operates in the United States, Europe, China, rest of Asia, and internationally. The company was founded in 2013 and is based in Torrance, California.

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.