Head-To-Head Analysis: Rubicon Technology (RBCN) & Monolithic Power Systems (MPWR)

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

Valuation and Earnings

This table compares Rubicon Technology and Monolithic Power Systems’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Rubicon Technology $19.63 million 1.11 -$62.87 million ($21.96) -0.36
Monolithic Power Systems $388.67 million 12.70 $52.72 million $1.61 73.86

Monolithic Power Systems has higher revenue and earnings than Rubicon Technology. Rubicon Technology 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.

Analyst Recommendations

This is a summary of current ratings for Rubicon Technology and Monolithic Power Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rubicon Technology 0 0 0 0 N/A
Monolithic Power Systems 0 0 7 1 3.13

Monolithic Power Systems has a consensus target price of $124.25, indicating a potential upside of 4.48%. Given Monolithic Power Systems’ higher possible upside, analysts clearly believe Monolithic Power Systems is more favorable than Rubicon Technology.

Volatility and Risk

Rubicon Technology has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Monolithic Power Systems has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500.

Dividends

Monolithic Power Systems pays an annual dividend of $0.80 per share and has a dividend yield of 0.7%. Rubicon Technology does not pay a dividend. Monolithic Power Systems pays out 49.7% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Rubicon Technology -410.60% -77.35% -73.06%
Monolithic Power Systems 15.66% 15.40% 12.91%

Institutional and Insider Ownership

37.5% of Rubicon Technology shares are held by institutional investors. Comparatively, 92.9% of Monolithic Power Systems shares are held by institutional investors. 12.1% of Rubicon Technology 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Monolithic Power Systems beats Rubicon Technology on 13 of the 15 factors compared between the two stocks.

Rubicon Technology Company Profile

Rubicon Technology, Inc. is a vertically integrated, electronic materials provider specializing in monocrystalline sapphire for applications in light-emitting diodes (LEDs), optical systems and specialty electronic devices. The Company’s product lines include sapphire cores; four and six-inch sapphire wafers; four, six, and eight-inch patterned sapphire substrate (PSS) wafers, and optical sapphire components. Its sapphire is also used as an exterior component in mobile devices, specifically camera lens covers, dual flashes and home buttons on certain newer model smartphones and as the crystal covering the faces of certain smart watches. In addition, some consumer electronics original equipment manufacturers (OEMs) use sapphire faceplates for smartphones. For the LED market, it sells 2 to 6-inch material in core form and four, six and eight-inch material in polished and PSS wafer form. Its principal customers are semiconductor device manufacturers and wafer polishing companies.

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.

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