Monolithic Power Systems (NASDAQ:MPWR) and China Sunergy (OTCMKTS:CSUNY) Financial Analysis

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

Valuation and Earnings

This table compares Monolithic Power Systems and China Sunergy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Monolithic Power Systems	$1.82 billion	15.21	$427.37 million	$8.87	64.00
China Sunergy	N/A	N/A	N/A	N/A	N/A

Monolithic Power Systems has higher revenue and earnings than China Sunergy.

Analyst Recommendations

This is a breakdown of current ratings for Monolithic Power Systems and China Sunergy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Monolithic Power Systems	0	2	9	0	2.82
China Sunergy	0	0	0	0	0.00

Monolithic Power Systems currently has a consensus target price of $840.36, indicating a potential upside of 48.05%. Given Monolithic Power Systems’ stronger consensus rating and higher possible upside, equities analysts clearly believe Monolithic Power Systems is more favorable than China Sunergy.

Institutional & Insider Ownership

93.5% of Monolithic Power Systems shares are held by institutional investors. 3.7% 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 will outperform the market over the long term.

Volatility and Risk

Monolithic Power Systems has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, China Sunergy has a beta of 3.78, meaning that its share price is 278% more volatile than the S&P 500.

Profitability

This table compares Monolithic Power Systems and China Sunergy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Monolithic Power Systems	21.29%	20.44%	16.93%
China Sunergy	N/A	N/A	N/A

Summary

Monolithic Power Systems beats China Sunergy on 9 of the 10 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 China Sunergy

China Sunergy Co., Ltd., together with its subsidiaries, designs, develops, manufactures, and markets solar cells and modules in the People's Republic of China and internationally. The company offers monocrystalline and multicrystalline silicon solar cells; and standard P-type solar cells, HP solar cells, and emitter cells, as well as solar modules for use in a range of residential, commercial, industrial, and other solar power generation systems. It also invests in, develops, and operates solar power projects. The company sells its products to system integrators, solar power project developers, and solar power product distributors under the CSUN brand name, as well as on an original equipment manufacturing basis. China Sunergy Co., Ltd. was founded in 2004 and is headquartered in Nanjing, the People's Republic of China.