ALGM vs. MPWR: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ALGM and MPWR, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
MPWR’s market capitalization of 36.32 billion USD is significantly greater than ALGM’s 6.64 billion USD, highlighting its more substantial market valuation.
With betas of 1.67 for ALGM and 1.19 for MPWR, both stocks show similar sensitivity to overall market movements.
| Symbol | ALGM | MPWR |
|---|---|---|
| Company Name | Allegro MicroSystems, Inc. | Monolithic Power Systems, Inc. |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Semiconductors | Semiconductors |
| CEO | Michael C. Doogue | Michael R. Hsing |
| Price | 35.93 USD | 758.64 USD |
| Market Cap | 6.64 billion USD | 36.32 billion USD |
| Beta | 1.67 | 1.19 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | October 29, 2020 | November 19, 2004 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ALGM and MPWR by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ALGM
-7.47%
Semiconductors Industry
- Max
- 41.84%
- Q3
- 15.81%
- Median
- 6.31%
- Q1
- -5.54%
- Min
- -30.12%
ALGM has a negative Return on Equity of -7.47%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
MPWR
66.71%
Semiconductors Industry
- Max
- 41.84%
- Q3
- 15.81%
- Median
- 6.31%
- Q1
- -5.54%
- Min
- -30.12%
MPWR’s Return on Equity of 66.71% is exceptionally high, placing it well beyond the typical range for the Semiconductors industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Return on Invested Capital
ALGM
-1.28%
Semiconductors Industry
- Max
- 30.91%
- Q3
- 11.34%
- Median
- 4.08%
- Q1
- -2.17%
- Min
- -19.59%
ALGM has a negative Return on Invested Capital of -1.28%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
MPWR
50.69%
Semiconductors Industry
- Max
- 30.91%
- Q3
- 11.34%
- Median
- 4.08%
- Q1
- -2.17%
- Min
- -19.59%
MPWR’s Return on Invested Capital of 50.69% is exceptionally high, placing it well beyond the typical range for the Semiconductors industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.
Net Profit Margin
ALGM
-10.07%
Semiconductors Industry
- Max
- 51.69%
- Q3
- 19.67%
- Median
- 8.56%
- Q1
- -5.44%
- Min
- -38.60%
ALGM has a negative Net Profit Margin of -10.07%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
MPWR
76.59%
Semiconductors Industry
- Max
- 51.69%
- Q3
- 19.67%
- Median
- 8.56%
- Q1
- -5.44%
- Min
- -38.60%
MPWR’s Net Profit Margin of 76.59% is exceptionally high, placing it well beyond the typical range for the Semiconductors industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
Operating Profit Margin
ALGM
-2.73%
Semiconductors Industry
- Max
- 58.03%
- Q3
- 22.12%
- Median
- 8.40%
- Q1
- -3.73%
- Min
- -36.14%
ALGM has a negative Operating Profit Margin of -2.73%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
MPWR
25.67%
Semiconductors Industry
- Max
- 58.03%
- Q3
- 22.12%
- Median
- 8.40%
- Q1
- -3.73%
- Min
- -36.14%
An Operating Profit Margin of 25.67% places MPWR in the upper quartile for the Semiconductors industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | ALGM | MPWR |
|---|---|---|
| Return on Equity (TTM) | -7.47% | 66.71% |
| Return on Assets (TTM) | -5.14% | 48.03% |
| Return on Invested Capital (TTM) | -1.28% | 50.69% |
| Net Profit Margin (TTM) | -10.07% | 76.59% |
| Operating Profit Margin (TTM) | -2.73% | 25.67% |
| Gross Profit Margin (TTM) | 44.35% | 55.37% |
Financial Strength
Current Ratio
ALGM
4.30
Semiconductors Industry
- Max
- 9.10
- Q3
- 5.23
- Median
- 3.09
- Q1
- 2.49
- Min
- 1.02
ALGM’s Current Ratio of 4.30 aligns with the median group of the Semiconductors industry, indicating that its short-term liquidity is in line with its sector peers.
MPWR
4.92
Semiconductors Industry
- Max
- 9.10
- Q3
- 5.23
- Median
- 3.09
- Q1
- 2.49
- Min
- 1.02
MPWR’s Current Ratio of 4.92 aligns with the median group of the Semiconductors industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
ALGM
0.37
Semiconductors Industry
- Max
- 0.97
- Q3
- 0.46
- Median
- 0.21
- Q1
- 0.05
- Min
- 0.00
ALGM’s Debt-to-Equity Ratio of 0.37 is typical for the Semiconductors industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
MPWR
0.00
Semiconductors Industry
- Max
- 0.97
- Q3
- 0.46
- Median
- 0.21
- Q1
- 0.05
- Min
- 0.00
Falling into the lower quartile for the Semiconductors industry, MPWR’s Debt-to-Equity Ratio of 0.00 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio
ALGM
-1.08
Semiconductors Industry
- Max
- 36.25
- Q3
- 29.12
- Median
- 7.01
- Q1
- -1.22
- Min
- -18.18
ALGM has a negative Interest Coverage Ratio of -1.08. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
MPWR
--
Semiconductors Industry
- Max
- 36.25
- Q3
- 29.12
- Median
- 7.01
- Q1
- -1.22
- Min
- -18.18
Interest Coverage Ratio data for MPWR is currently unavailable.
Financial Strength at a Glance
| Symbol | ALGM | MPWR |
|---|---|---|
| Current Ratio (TTM) | 4.30 | 4.92 |
| Quick Ratio (TTM) | 2.66 | 3.67 |
| Debt-to-Equity Ratio (TTM) | 0.37 | 0.00 |
| Debt-to-Asset Ratio (TTM) | 0.24 | 0.00 |
| Net Debt-to-EBITDA Ratio (TTM) | -26.81 | -0.97 |
| Interest Coverage Ratio (TTM) | -1.08 | -- |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ALGM and MPWR. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ALGM
0.00%
Semiconductors Industry
- Max
- 6.48%
- Q3
- 0.93%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ALGM currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
MPWR
0.74%
Semiconductors Industry
- Max
- 6.48%
- Q3
- 0.93%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
MPWR’s Dividend Yield of 0.74% is consistent with its peers in the Semiconductors industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
ALGM
0.00%
Semiconductors Industry
- Max
- 204.29%
- Q3
- 31.85%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ALGM has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
MPWR
13.74%
Semiconductors Industry
- Max
- 204.29%
- Q3
- 31.85%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
MPWR’s Dividend Payout Ratio of 13.74% is within the typical range for the Semiconductors industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ALGM | MPWR |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.74% |
| Dividend Payout Ratio (TTM) | 0.00% | 13.74% |
Valuation
Price-to-Earnings Ratio
ALGM
-90.63
Semiconductors Industry
- Max
- 86.15
- Q3
- 47.38
- Median
- 27.87
- Q1
- 18.89
- Min
- 4.73
ALGM has a negative P/E Ratio of -90.63. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.
MPWR
19.86
Semiconductors Industry
- Max
- 86.15
- Q3
- 47.38
- Median
- 27.87
- Q1
- 18.89
- Min
- 4.73
MPWR’s P/E Ratio of 19.86 is within the middle range for the Semiconductors industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
ALGM
-1.44
Semiconductors Industry
- Max
- 4.73
- Q3
- 2.80
- Median
- 1.11
- Q1
- 0.68
- Min
- 0.01
The Forward PEG Ratio is often not a primary valuation metric in the Semiconductors industry.
MPWR
0.93
Semiconductors Industry
- Max
- 4.73
- Q3
- 2.80
- Median
- 1.11
- Q1
- 0.68
- Min
- 0.01
The Forward PEG Ratio is often not a primary valuation metric in the Semiconductors industry.
Price-to-Sales Ratio
ALGM
9.16
Semiconductors Industry
- Max
- 21.96
- Q3
- 10.21
- Median
- 4.45
- Q1
- 2.32
- Min
- 0.48
ALGM’s P/S Ratio of 9.16 aligns with the market consensus for the Semiconductors industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
MPWR
15.22
Semiconductors Industry
- Max
- 21.96
- Q3
- 10.21
- Median
- 4.45
- Q1
- 2.32
- Min
- 0.48
MPWR’s P/S Ratio of 15.22 is in the upper echelon for the Semiconductors industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio
ALGM
7.11
Semiconductors Industry
- Max
- 13.12
- Q3
- 6.49
- Median
- 3.31
- Q1
- 1.74
- Min
- 0.23
ALGM’s P/B Ratio of 7.11 is in the upper tier for the Semiconductors industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
MPWR
11.11
Semiconductors Industry
- Max
- 13.12
- Q3
- 6.49
- Median
- 3.31
- Q1
- 1.74
- Min
- 0.23
MPWR’s P/B Ratio of 11.11 is in the upper tier for the Semiconductors industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | ALGM | MPWR |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -90.63 | 19.86 |
| Forward PEG Ratio (TTM) | -1.44 | 0.93 |
| Price-to-Sales Ratio (P/S, TTM) | 9.16 | 15.22 |
| Price-to-Book Ratio (P/B, TTM) | 7.11 | 11.11 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 302.55 | 58.00 |
| EV-to-EBITDA (TTM) | -819.02 | 55.74 |
| EV-to-Sales (TTM) | 9.47 | 14.96 |