Seek Returns logo

MPWR vs. VRSN: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at MPWR and VRSN, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolMPWRVRSN
Company NameMonolithic Power Systems, Inc.VeriSign, Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustrySemiconductors & Semiconductor EquipmentIT Services
Market Capitalization40.42 billion USD25.18 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateNovember 19, 2004January 30, 1998
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of MPWR and VRSN 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.

MPWR vs. VRSN: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolMPWRVRSN
5-Day Price Return-0.74%0.71%
13-Week Price Return24.37%-4.10%
26-Week Price Return22.18%16.60%
52-Week Price Return-10.89%49.40%
Month-to-Date Return18.67%0.25%
Year-to-Date Return42.64%30.24%
10-Day Avg. Volume0.57M0.85M
3-Month Avg. Volume0.64M0.89M
3-Month Volatility41.36%29.55%
Beta1.280.78

Profitability

Return on Equity (TTM)

MPWR

61.19%

Semiconductors & Semiconductor Equipment Industry

Max
52.74%
Q3
23.49%
Median
11.60%
Q1
3.23%
Min
-20.69%

MPWR’s Return on Equity of 61.19% is exceptionally high, placing it well beyond the typical range for the Semiconductors & Semiconductor Equipment industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

VRSN

113.55%

IT Services Industry

Max
29.51%
Q3
16.98%
Median
13.47%
Q1
7.93%
Min
-3.97%

VRSN’s Return on Equity of 113.55% is exceptionally high, placing it well beyond the typical range for the IT Services industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

MPWR vs. VRSN: A comparison of their Return on Equity (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Net Profit Margin (TTM)

MPWR

73.17%

Semiconductors & Semiconductor Equipment Industry

Max
44.17%
Q3
22.38%
Median
11.95%
Q1
3.21%
Min
-25.16%

MPWR’s Net Profit Margin of 73.17% is exceptionally high, placing it well beyond the typical range for the Semiconductors & Semiconductor Equipment industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

VRSN

50.03%

IT Services Industry

Max
19.82%
Q3
11.49%
Median
6.67%
Q1
3.61%
Min
-4.62%

VRSN’s Net Profit Margin of 50.03% is exceptionally high, placing it well beyond the typical range for the IT Services industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

MPWR vs. VRSN: A comparison of their Net Profit Margin (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Operating Profit Margin (TTM)

MPWR

25.98%

Semiconductors & Semiconductor Equipment Industry

Max
58.03%
Q3
27.84%
Median
12.45%
Q1
5.15%
Min
-28.61%

MPWR’s Operating Profit Margin of 25.98% is around the midpoint for the Semiconductors & Semiconductor Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.

VRSN

67.89%

IT Services Industry

Max
21.69%
Q3
14.50%
Median
10.06%
Q1
6.98%
Min
0.06%

VRSN’s Operating Profit Margin of 67.89% is exceptionally high, placing it well above the typical range for the IT Services industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

MPWR vs. VRSN: A comparison of their Operating Profit Margin (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Profitability at a Glance

SymbolMPWRVRSN
Return on Equity (TTM)61.19%113.55%
Return on Assets (TTM)52.25%55.87%
Net Profit Margin (TTM)73.17%50.03%
Operating Profit Margin (TTM)25.98%67.89%
Gross Profit Margin (TTM)55.31%87.88%

Financial Strength

Current Ratio (MRQ)

MPWR

5.00

Semiconductors & Semiconductor Equipment Industry

Max
8.42
Q3
4.70
Median
2.75
Q1
2.07
Min
1.04

MPWR’s Current Ratio of 5.00 is in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

VRSN

0.54

IT Services Industry

Max
2.42
Q3
1.81
Median
1.47
Q1
1.09
Min
0.44

VRSN’s Current Ratio of 0.54 falls into the lower quartile for the IT Services industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

MPWR vs. VRSN: A comparison of their Current Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Debt-to-Equity Ratio (MRQ)

MPWR

0.00

Semiconductors & Semiconductor Equipment Industry

Max
1.09
Q3
0.45
Median
0.22
Q1
0.01
Min
0.00

Falling into the lower quartile for the Semiconductors & Semiconductor Equipment 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.

VRSN

1.07

IT Services Industry

Max
2.33
Q3
1.17
Median
0.54
Q1
0.15
Min
0.00

VRSN’s Debt-to-Equity Ratio of 1.07 is typical for the IT Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

MPWR vs. VRSN: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Interest Coverage Ratio (TTM)

MPWR

--

Semiconductors & Semiconductor Equipment Industry

Max
174.00
Q3
81.10
Median
27.22
Q1
7.28
Min
-4.26

Interest Coverage Ratio data for MPWR is currently unavailable.

VRSN

27.96

IT Services Industry

Max
144.50
Q3
84.49
Median
13.76
Q1
2.59
Min
-28.13

VRSN’s Interest Coverage Ratio of 27.96 is positioned comfortably within the norm for the IT Services industry, indicating a standard and healthy capacity to cover its interest payments.

MPWR vs. VRSN: A comparison of their Interest Coverage Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Financial Strength at a Glance

SymbolMPWRVRSN
Current Ratio (MRQ)5.000.54
Quick Ratio (MRQ)3.520.50
Debt-to-Equity Ratio (MRQ)0.001.07
Interest Coverage Ratio (TTM)--27.96

Growth

Revenue Growth

MPWR vs. VRSN: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

MPWR vs. VRSN: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

MPWR

0.64%

Semiconductors & Semiconductor Equipment Industry

Max
4.16%
Q3
1.78%
Median
0.74%
Q1
0.00%
Min
0.00%

MPWR’s Dividend Yield of 0.64% is consistent with its peers in the Semiconductors & Semiconductor Equipment industry, providing a dividend return that is standard for its sector.

VRSN

0.00%

IT Services Industry

Max
2.80%
Q3
1.74%
Median
0.62%
Q1
0.00%
Min
0.00%

VRSN 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 vs. VRSN: A comparison of their Dividend Yield (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Dividend Payout Ratio (TTM)

MPWR

13.87%

Semiconductors & Semiconductor Equipment Industry

Max
196.12%
Q3
87.72%
Median
26.57%
Q1
0.00%
Min
0.00%

MPWR’s Dividend Payout Ratio of 13.87% is within the typical range for the Semiconductors & Semiconductor Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

VRSN

0.00%

IT Services Industry

Max
147.75%
Q3
63.58%
Median
24.63%
Q1
0.00%
Min
0.00%

VRSN 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 vs. VRSN: A comparison of their Dividend Payout Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Dividend at a Glance

SymbolMPWRVRSN
Dividend Yield (TTM)0.64%0.00%
Dividend Payout Ratio (TTM)13.87%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

MPWR

21.56

Semiconductors & Semiconductor Equipment Industry

Max
109.37
Q3
57.11
Median
28.95
Q1
22.13
Min
11.14

In the lower quartile for the Semiconductors & Semiconductor Equipment industry, MPWR’s P/E Ratio of 21.56 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

VRSN

31.73

IT Services Industry

Max
41.55
Q3
31.54
Median
23.25
Q1
18.12
Min
6.57

A P/E Ratio of 31.73 places VRSN in the upper quartile for the IT Services industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

MPWR vs. VRSN: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Price-to-Sales Ratio (TTM)

MPWR

15.78

Semiconductors & Semiconductor Equipment Industry

Max
16.09
Q3
10.10
Median
4.82
Q1
2.60
Min
0.93

MPWR’s P/S Ratio of 15.78 is in the upper echelon for the Semiconductors & Semiconductor Equipment 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.

VRSN

15.88

IT Services Industry

Max
6.61
Q3
4.37
Median
2.02
Q1
1.20
Min
0.19

With a P/S Ratio of 15.88, VRSN trades at a valuation that eclipses even the highest in the IT Services industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

MPWR vs. VRSN: A comparison of their Price-to-Sales Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Price-to-Book Ratio (MRQ)

MPWR

10.29

Semiconductors & Semiconductor Equipment Industry

Max
13.56
Q3
6.75
Median
3.68
Q1
1.89
Min
0.60

MPWR’s P/B Ratio of 10.29 is in the upper tier for the Semiconductors & Semiconductor Equipment 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.

VRSN

11.17

IT Services Industry

Max
11.19
Q3
6.38
Median
3.47
Q1
2.31
Min
0.96

VRSN’s P/B Ratio of 11.17 is in the upper tier for the IT Services 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 vs. VRSN: A comparison of their Price-to-Book Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Valuation at a Glance

SymbolMPWRVRSN
Price-to-Earnings Ratio (TTM)21.5631.73
Price-to-Sales Ratio (TTM)15.7815.88
Price-to-Book Ratio (MRQ)10.2911.17
Price-to-Free Cash Flow Ratio (TTM)56.9926.71