Monolithic Power Systems (NASDAQ:MPWR – Get Free Report) and POET Technologies (NASDAQ:POET – Get Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.
Insider and Institutional Ownership
96.5% of Monolithic Power Systems shares are owned by institutional investors. Comparatively, 2.0% of POET Technologies shares are owned by institutional investors. 3.2% of Monolithic Power Systems shares are owned by insiders. Comparatively, 0.5% of POET Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current recommendations and price targets for Monolithic Power Systems and POET Technologies, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Monolithic Power Systems | 0 | 1 | 12 | 0 | 2.92 |
| POET Technologies | 0 | 0 | 1 | 0 | 3.00 |
Risk & Volatility
Monolithic Power Systems has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, POET Technologies has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.
Earnings & Valuation
This table compares Monolithic Power Systems and POET Technologies’ revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Monolithic Power Systems | $1.79 billion | 11.97 | $437.67 million | $9.32 | 48.21 |
| POET Technologies | $550,000.00 | 241.00 | -$21.04 million | ($0.53) | -6.15 |
Monolithic Power Systems has higher revenue and earnings than POET Technologies. POET Technologies 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 Monolithic Power Systems and POET Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Monolithic Power Systems | 24.50% | 26.80% | 21.65% |
| POET Technologies | -2,526.04% | -160.92% | -129.93% |
Summary
Monolithic Power Systems beats POET Technologies on 11 of the 14 factors compared between the two stocks.
About Monolithic Power Systems
Monolithic Power Systems, Inc. engages in the design, development, marketing, and sale of semiconductor-based power electronics solutions for the computing and storage, automotive, industrial, communications, and consumer 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 portable electronic devices, wireless LAN access points, computers and notebooks, monitors, infotainment applications, and medical equipment. It also offers lighting control ICs for backlighting that are used in systems, which provide the light source for LCD panels in notebook computers, monitors, car navigation systems, and televisions, as well as for general illumination products. The company sells its products through third-party distributors and value-added resellers, as well as directly to original equipment manufacturers, original design manufacturers, electronic manufacturing service providers, and other end customers in China, Taiwan, Europe, South Korea, Southeast Asia, Japan, the United States, and internationally. Monolithic Power Systems, Inc. was incorporated in 1997 and is based in Kirkland, Washington.
About POET Technologies
POET Technologies Inc. designs, develops, manufactures, and sells discrete and integrated opto-electronic solutions in Canada, the United States, Singapore, and China. It offers integration solutions based on the POET Optical Interposer, a novel platform that allows the seamless integration of electronic and photonic devices into a single multi-chip module using advanced wafer-level semiconductor manufacturing techniques. It also develops photonic integrated components. The company serves the data center, telecommunications, Internet of things and industrial sensing, automotive LIDAR, optical coherence tomography for medical devices, and virtual reality systems markets. The company was formerly known as Opel Technologies Inc. and changed its name to POET Technologies Inc. in June 2013. POET Technologies Inc. was incorporated in 1972 and is headquartered in Toronto, Canada.
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