Financial Analysis: Monolithic Power Systems (NASDAQ:MPWR) vs. Solar Energy Initiatives (OTCMKTS:SNRY)

Monolithic Power Systems (NASDAQ:MPWR) and Solar Energy Initiatives (OTCMKTS:SNRY) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.

Valuation and Earnings

This table compares Monolithic Power Systems and Solar Energy Initiatives’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Monolithic Power Systems	$1.89 billion	22.16	$427.37 million	$8.39	102.79
Solar Energy Initiatives	N/A	N/A	N/A	N/A	N/A

Monolithic Power Systems has higher revenue and earnings than Solar Energy Initiatives.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Monolithic Power Systems and Solar Energy Initiatives, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Monolithic Power Systems	0	0	10	0	3.00
Solar Energy Initiatives	0	0	0	0	N/A

Monolithic Power Systems presently has a consensus target price of $882.30, indicating a potential upside of 2.01%. Given Monolithic Power Systems’ higher possible upside, analysts plainly believe Monolithic Power Systems is more favorable than Solar Energy Initiatives.

Profitability

This table compares Monolithic Power Systems and Solar Energy Initiatives’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Monolithic Power Systems	21.70%	20.63%	17.17%
Solar Energy Initiatives	N/A	N/A	N/A

Risk & Volatility

Monolithic Power Systems has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, Solar Energy Initiatives has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500.

Insider and Institutional Ownership

93.5% of Monolithic Power Systems shares are owned by institutional investors. Comparatively, 0.1% of Solar Energy Initiatives shares are owned by institutional investors. 3.2% of Monolithic Power Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Monolithic Power Systems beats Solar Energy Initiatives on 8 of the 9 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 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.

About Solar Energy Initiatives

Solar Energy Initiatives, Inc., together with its subsidiaries, markets and sells solar power products, systems, and services in the United States and the Caribbean. The company primarily designs, markets, and sells solar power systems for residential and commercial customers; and designs, markets, sells, owns, and operates solar power systems for municipal and commercial customers, as well as designs, develops, and manages solar parks. Its products include photovoltaic panels, photovoltaic roofing systems, solar thermal products, balance of system products, and management system products. The company was formerly known as NP Capital Corp. and changed its name to Solar Energy Initiatives, Inc. in September 2008. Solar Energy Initiatives, Inc. was founded in 2006 and is based in Cary, North Carolina.