Is Monolithic Power Systems Stock Outperforming Its Rivals?
With Monolithic Power Systems falling -7.6% in a Day, it makes sense to re-evaluate vs its peers. Consistently assessing alternatives is core to a sound investment approach. Here is how Monolithic Power Systems (MPWR) stock stacks up against its peers in size, valuation, growth and margin.
- MPWR’s operating margin of 26.0% is high, higher than most peers though lower than TXN (34.8%).
- MPWR’s revenue growth of 34.3% in the last 12 months is strong, outpacing TXN, ADI, FSLR, ON, DIOD.
- MPWR’s stock gained 33.5% over the past year and trades at a PE of 25.9, though peers like FSLR delivered stronger returns.
As a quick background, Monolithic Power Systems provides DC-to-DC integrated circuits for voltage conversion and control in electronic systems, distributed through third-party distributors and value-added resellers.
A single stock can be risky, but there is a huge value to a broader, diversified approach. Quiz time: Over the last 5 years, which index do you think the Trefis High Quality Portfolio outperformed — the S&P 500, the S&P 1500 Equal Weighted, or both? The answer might surprise you. See how our advisory framework helps stack the odds in your favor.
| MPWR | TXN | ADI | FSLR | ON | DIOD | |
|---|---|---|---|---|---|---|
| Market Cap ($ Bil) | 48.1 | 146.8 | 115.8 | 28.6 | 20.8 | 2.5 |
| Revenue ($ Bil) | 2.5 | 17.3 | 10.4 | 4.3 | 6.4 | 1.4 |
| PE Ratio | 25.9 | 29.1 | 59.1 | 22.8 | 44.6 | 38.9 |
| LTM Revenue Growth | 34.3% | 9.9% | 7.1% | 15.4% | -17.9% | 2.9% |
| LTM Operating Margin | 26.0% | 34.8% | 25.3% | 31.3% | 17.5% | 3.0% |
| LTM FCF Margin | 28.4% | 12.0% | 35.4% | -21.7% | 20.1% | 11.8% |
| 12M Market Return | 33.5% | -17.9% | 6.7% | 37.3% | -29.0% | -8.8% |
Why does this matter? MPWR just went up 8% in a month – peer comparison puts stock performance, valuation, and financials in context – highlighting whether it is truly outperforming, lagging behind, and above all – can this continue? Read Buy or Sell MPWR Stock to see if Monolithic Power Systems holds up as a quality investment. Furthermore, there is always a risk of fall after a strong rally – see how the stock has dipped and recovered in the past through MPWR Dip Buyer Analysis lens.
Revenue Growth Comparison
| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| MPWR | 34.3% | 21.2% | 1.5% | 48.5% |
| TXN | 9.9% | -10.7% | -12.5% | 9.2% |
| ADI | 7.1% | -23.4% | 2.4% | 64.2% |
| FSLR | 15.4% | 26.7% | 26.7% | -10.4% |
| ON | -17.9% | -14.2% | -0.9% | 23.5% |
| DIOD | 2.9% | -21.1% | -16.9% | 10.8% |
Operating Margin Comparison
| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| MPWR | 26.0% | 24.4% | 26.5% | 29.4% |
| TXN | 34.8% | 34.1% | 41.8% | 51.9% |
| ADI | 25.3% | 22.0% | 32.4% | 29.6% |
| FSLR | 31.3% | 33.1% | 26.7% | -10.7% |
| ON | 17.5% | 26.9% | 31.7% | 33.2% |
| DIOD | 3.0% | 3.9% | 15.1% | 20.2% |
PE Ratio Comparison
| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| MPWR | 25.9 | 16.1 | 70.3 | 37.8 |
| TXN | 29.1 | 35.6 | 23.8 | 17.3 |
| ADI | 59.1 | 64.5 | 30.1 | 31.0 |
| FSLR | 22.8 | 14.6 | 22.1 | -361.4 |
| ON | 44.6 | 17.1 | 16.5 | 14.2 |
| DIOD | 38.9 | 64.7 | 16.2 | 10.4 |
While peer comparison is critical, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.