CEVA (NASDAQ: CEVA) and Monolithic Power Systems (NASDAQ:MPWR) are both technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.
Risk & Volatility
CEVA has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Monolithic Power Systems has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500.
This table compares CEVA and Monolithic Power Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Monolithic Power Systems||13.85%||16.51%||13.65%|
Insider & Institutional Ownership
90.2% of CEVA shares are held by institutional investors. Comparatively, 91.1% of Monolithic Power Systems shares are held by institutional investors. 3.9% of CEVA shares are held by company insiders. Comparatively, 4.0% of Monolithic Power Systems shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a breakdown of current recommendations and price targets for CEVA and Monolithic Power Systems, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Monolithic Power Systems||0||0||7||0||3.00|
CEVA currently has a consensus price target of $47.50, suggesting a potential upside of 22.27%. Monolithic Power Systems has a consensus price target of $127.71, suggesting a potential upside of 3.25%. Given CEVA’s higher probable upside, equities research analysts clearly believe CEVA is more favorable than Monolithic Power Systems.
Monolithic Power Systems pays an annual dividend of $0.80 per share and has a dividend yield of 0.6%. CEVA does not pay a dividend. Monolithic Power Systems pays out 30.0% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares CEVA and Monolithic Power Systems’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CEVA||$87.51 million||9.86||$17.02 million||$0.75||51.80|
|Monolithic Power Systems||$470.93 million||11.07||$65.20 million||$2.67||46.33|
Monolithic Power Systems has higher revenue and earnings than CEVA. Monolithic Power Systems is trading at a lower price-to-earnings ratio than CEVA, indicating that it is currently the more affordable of the two stocks.
Monolithic Power Systems beats CEVA on 12 of the 16 factors compared between the two stocks.
CEVA Company Profile
CEVA, Inc. (CEVA) is a licensor of signal processing intellectual property (IP). The Company partners with semiconductor companies and original equipment manufacturers (OEMs) to create connected devices for a range of end markets, including mobile, consumer, automotive, industrial and Internet of things (IoT). The Company operates in the segment of licensing of intellectual property to semiconductor companies and electronic equipment manufacturers. CEVA addresses the requirements of the mobile, consumer, automotive, industrial and IoT markets by designing and licensing a range of application-specific signal processing platforms, which enable the design of solutions for developing a range of applications, including communications and connectivity, audio and voice, imaging and vision, and storage.
Monolithic Power Systems Company Profile
Monolithic Power Systems, Inc. designs, develops and markets integrated power semiconductor solutions and power delivery architectures. The Company operates in the design, development, marketing and sale of power solutions for the communications, storage and computing, consumer and industrial markets segment. The Company’s product families include Direct Current (DC) to DC Products, and Lighting Control Products. The Company’s DC to DC integrated circuits (ICs) are used to convert and control voltages within a range of electronic systems, such as portable electronic devices, wireless local area network (LAN) access points, computers, monitors, automobiles and medical equipment. Lighting control ICs are used in backlighting and general illumination products. In addition to Alternating Current (AC)/DC offline solutions for lighting illumination applications, the Company also offers AC/DC power conversion solutions for end products that plug into a wall outlet.
Receive News & Ratings for CEVA Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CEVA and related companies with MarketBeat.com's FREE daily email newsletter.