Home > Comparison > Technology > MPWR vs CRUS
The strategic rivalry between Monolithic Power Systems, Inc. and Cirrus Logic, Inc. shapes the trajectory of the semiconductor industry. Monolithic Power Systems operates as a capital-intensive provider of power electronics ICs, while Cirrus Logic specializes as a fabless innovator in mixed-signal audio processing. This head-to-head highlights a contest between integrated hardware solutions and niche audio technologies. This analysis aims to identify which company presents the superior risk-adjusted return for a diversified portfolio.
Table of contents
Companies Overview
Monolithic Power Systems and Cirrus Logic stand as key players in the semiconductor market, shaping critical technology segments.
Monolithic Power Systems, Inc.: Power Electronics Innovator
Monolithic Power Systems dominates the semiconductor-based power electronics niche. It generates revenue primarily through DC-to-DC integrated circuits that regulate voltages across computing, automotive, and industrial systems. In 2026, its strategic focus sharpened on expanding its footprint in high-growth sectors like automotive and communications, leveraging advanced voltage control solutions to capture global OEM and ODM demand.
Cirrus Logic, Inc.: Mixed-Signal Audio Specialist
Cirrus Logic leads in low-power mixed-signal processing, specializing in audio codec ICs and digital signal processors. The company earns from supplying smart codecs and SoundClear technology integrated into smartphones, AR/VR, and automotive audio systems. Its 2026 strategy centers on enhancing user experience with audio clarity and noise cancellation, aiming to deepen penetration in portable consumer electronics and automotive infotainment.
Strategic Collision: Similarities & Divergences
Both companies operate in semiconductors but diverge sharply: Monolithic Power emphasizes power management ICs, while Cirrus Logic focuses on audio and mixed-signal processing. They compete indirectly, with Monolithic powering device infrastructure and Cirrus enhancing user interface experiences. Their investment profiles differ markedly—Monolithic offers exposure to capital-intensive power electronics markets, Cirrus to niche audio innovation with potential for steady consumer adoption.
Income Statement Comparison
This data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | Monolithic Power Systems, Inc. (MPWR) | Cirrus Logic, Inc. (CRUS) |
|---|---|---|
| Revenue | 2.79B | 1.90B |
| Cost of Revenue | 1.25B | 900M |
| Operating Expenses | 811M | 586M |
| Gross Profit | 1.54B | 996M |
| EBITDA | 780M | 497M |
| EBIT | 729M | 445M |
| Interest Expense | 0 | 0.9M |
| Net Income | 616M | 332M |
| EPS | 12.82 | 6.24 |
| Fiscal Year | 2025 | 2025 |
Income Statement Analysis: The Bottom-Line Duel
The income statement comparison exposes which company operates its financial engine more efficiently and delivers stronger profitability.
Monolithic Power Systems, Inc. Analysis
Monolithic Power Systems (MPWR) grew revenue by 26% in 2025, reaching $2.79B, while net income fell sharply to $616M from $1.79B in 2024. The firm sustains a robust gross margin of 55%, indicating solid cost control. However, its net margin declined to 22%, signaling pressure on bottom-line efficiency despite a 35% EBIT jump, reflecting mixed momentum.
Cirrus Logic, Inc. Analysis
Cirrus Logic (CRUS) posted revenue of $1.90B in 2025, up modestly by 6%, with net income climbing 21% to $332M. Gross margin stands at 53%, slightly below MPWR but still favorable, while net margin improved to 17.5%. The company advances steadily with a 22% increase in EPS and a healthy EBIT margin of 23.5%, reflecting consistent operational leverage.
Margin Strength vs. Growth Momentum
MPWR commands higher gross and net margins, showcasing superior cost efficiency and scale. Yet, its net income volatility and recent margin compression raise caution. CRUS delivers steadier net income growth with improving margins but at lower absolute profit levels. Investors favor MPWR’s margin power if they seek scale; CRUS suits those prioritizing steady earnings momentum.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency for the companies compared below:
| Ratios | Monolithic Power Systems, Inc. (MPWR) | Cirrus Logic, Inc. (CRUS) |
|---|---|---|
| ROE | 16.6% | 17.0% |
| ROIC | 14.9% | 14.2% |
| P/E | 70.7 | 15.9 |
| P/B | 11.7 | 2.7 |
| Current Ratio | 5.9 | 6.4 |
| Quick Ratio | 4.4 | 4.8 |
| D/E | 0 | 0.07 |
| Debt-to-Assets | 0 | 6.2% |
| Interest Coverage | 0 | 457 |
| Asset Turnover | 0.65 | 0.81 |
| Fixed Asset Turnover | 4.45 | 6.62 |
| Payout ratio | 46.2% | 0 |
| Dividend yield | 0.65% | 0 |
| Fiscal Year | 2025 | 2025 |
Efficiency & Valuation Duel: The Vital Signs
Financial ratios form a company’s DNA, exposing hidden operational strengths and risks to guide investment decisions.
Monolithic Power Systems, Inc.
Monolithic Power Systems delivers strong profitability with a 16.55% ROE and a 22.07% net margin, signaling operational excellence. Yet, its valuation multiples are stretched, with a P/E of 70.69 and P/B at 11.7, suggesting the stock trades at a premium. The 0.65% dividend yield indicates modest shareholder returns amid significant reinvestment in R&D (13.7% of revenue).
Cirrus Logic, Inc.
Cirrus Logic shows solid efficiency, with a 17.01% ROE and 17.48% net margin, reflecting robust core profitability. Its valuation is reasonable, with a P/E of 15.95 and P/B at 2.71, marking it as fairly priced. The company does not pay dividends, instead prioritizing growth through R&D investment, allocating 22.9% of revenue to advance innovation.
Premium Valuation vs. Operational Safety
Monolithic Power commands a premium valuation with high profitability but carries valuation risks. Cirrus Logic balances solid returns with more moderate valuation multiples, reducing price risk. Investors seeking growth at a reasonable price may prefer Cirrus Logic’s profile, while those comfortable with valuation stretch might consider Monolithic Power.
Which one offers the Superior Shareholder Reward?
Monolithic Power Systems (MPWR) pays a modest dividend yield near 0.65%, with a sustainable payout ratio around 46%, supported by solid free cash flow. It also executes measured buybacks enhancing shareholder returns. Cirrus Logic (CRUS) opts for no dividends but aggressively repurchases shares, fueled by strong free cash flow and moderate leverage. Historically, MPWR’s balanced dividend and buyback strategy suits income-oriented investors, while CRUS’s full buyback focus targets capital gains. In 2026, I see MPWR’s yield plus buybacks offering steadier total returns, whereas CRUS’s riskier, buyback-heavy model suits growth seekers. For a conservative portfolio, MPWR offers the superior shareholder reward.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of Monolithic Power Systems and Cirrus Logic, highlighting their competitive financial strengths and vulnerabilities:
Cirrus Logic delivers a more balanced profile with favorable scores in DCF (4), ROE (4), and moderate leverage and valuation metrics. Monolithic Power excels in asset efficiency (ROA 5) but suffers from weak debt management and expensive valuation (scores of 1). I see Cirrus Logic relying on steady financial discipline, while Monolithic Power depends heavily on operational efficiency despite financial risks.
Bankruptcy Risk: Solvency Showdown
Both firms reside comfortably in the safe zone of Altman Z-Scores, but Monolithic Power’s extraordinary 63.2 score versus Cirrus Logic’s 15.7 signals a significantly stronger buffer against financial distress in this cycle:
Financial Health: Quality of Operations
Cirrus Logic’s Piotroski score of 7 marks it as financially strong, outperforming Monolithic Power’s average score of 5. This signals better profitability, liquidity, and operational efficiency for Cirrus, while Monolithic Power shows some red flags in internal metrics:
How are the two companies positioned?
This section dissects the operational DNA of MPWR and CRUS by comparing their revenue distribution by segment and internal dynamics. The goal is to confront their economic moats and identify which model offers the most resilient competitive advantage today.
Revenue Segmentation: The Strategic Mix
This visual comparison dissects how Monolithic Power Systems and Cirrus Logic diversify their income streams and where their primary sector bets lie:
Monolithic Power Systems anchors its revenue in DC To DC Products with $1.72B in 2023, dwarfing its Lighting Control Products at $102M. Cirrus Logic shows a more balanced split, with Portable Audio Products at $1.14B and High-Performance Mixed Signal Products at $759M in 2025. MPWR’s concentration signals infrastructure dominance but raises concentration risk. CRUS’s diversified mix reduces dependency and strengthens ecosystem lock-in.
Strengths and Weaknesses Comparison
This table compares the strengths and weaknesses of Monolithic Power Systems, Inc. (MPWR) and Cirrus Logic, Inc. (CRUS):
MPWR Strengths
- High net margin at 22.07%
- Strong ROE of 16.55%
- ROIC above WACC at 14.93%
- Zero debt enhances financial stability
- High fixed asset turnover at 4.45
- Diversified global sales with strong China and Taiwan presence
CRUS Strengths
- Solid net margin of 17.48%
- ROE slightly higher at 17.01%
- ROIC also above WACC at 14.2%
- Very high interest coverage ratio at 495.45
- Higher fixed asset turnover at 6.62
- Diversified global sales including strong presence in China and India
MPWR Weaknesses
- Unfavorable high P/E at 70.69 and P/B at 11.7
- Current ratio very high at 5.91, could indicate inefficient capital use
- WACC higher than ROIC at 10.63%
- Dividend yield low at 0.65%
- Moderate asset turnover at 0.65
CRUS Weaknesses
- Higher current ratio at 6.35 suggests capital inefficiency
- Zero dividend yield may deter income-focused investors
- P/E and P/B ratios neutral but lower than MPWR’s
- WACC neutral at 9.01%, closer to ROIC
- Asset turnover neutral at 0.81
Both MPWR and CRUS show strong profitability and efficient capital allocation with ROIC exceeding WACC, supporting competitive moats. MPWR’s zero debt and high quick ratio strengthen its balance sheet, while CRUS benefits from superior fixed asset turnover and interest coverage. Both face challenges in capital efficiency and yield metrics, which may influence their strategic financial management going forward.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat is the only thing protecting long-term profits from relentless competition erosion. Let’s examine how these two firms defend their turf:
Monolithic Power Systems, Inc.: Cost Advantage with Diversified Market Reach
Monolithic Power leverages cost advantage through integrated DC-DC ICs, yielding a strong 26% EBIT margin and 55% gross margin. Despite a slight ROIC decline, expanding industrial and automotive markets could deepen its moat in 2026.
Cirrus Logic, Inc.: Intangible Assets and Innovation-Driven Moat
Cirrus Logic’s moat stems from proprietary mixed-signal audio processing and SoundClear technology. Its improving ROIC and strong margin growth demonstrate effective capital use. Innovation in AR/VR and automotive audio promises further moat expansion.
Cost Leadership vs. Innovation-Led Differentiation
Cirrus Logic exhibits a deeper, expanding moat with rising ROIC and innovation-driven growth. Monolithic Power shows solid value creation but faces slightly declining profitability. Cirrus is better positioned to defend market share amid evolving technology demands.
Which stock offers better returns?
Monolithic Power Systems, Inc. and Cirrus Logic, Inc. show strong price appreciation over the past year, with notable acceleration phases and distinct volatility profiles shaping their trading dynamics.
Trend Comparison
Monolithic Power Systems, Inc. gained 79.02% over the past year, showing a bullish trend with accelerating momentum. The stock’s price ranged between 477.39 and 1229.82, with high volatility (std dev 150.74).
Cirrus Logic, Inc. increased 61.02% in the same period, also bullish with acceleration. It exhibited lower volatility (std dev 14.64) and traded between 82.02 and 145.69, reflecting steadier gains.
Monolithic Power Systems delivered the highest market performance with stronger price gains and greater acceleration, despite elevated volatility compared to Cirrus Logic.
Target Prices
Analysts present a constructive consensus on target prices for Monolithic Power Systems, Inc. and Cirrus Logic, Inc.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| Monolithic Power Systems, Inc. | 1200 | 1500 | 1313.71 |
| Cirrus Logic, Inc. | 110 | 163 | 144.5 |
The target consensus for Monolithic Power Systems suggests a modest upside from its current price of $1229.82. Cirrus Logic’s consensus closely aligns with its current price of $142.78, indicating market expectations are fairly balanced.
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How do institutions grade them?
Monolithic Power Systems, Inc. Grades
The following table summarizes recent institutional grades for Monolithic Power Systems, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Rosenblatt | maintain | Neutral | 2026-02-06 |
| Needham | maintain | Buy | 2026-02-06 |
| Keybanc | maintain | Overweight | 2026-02-06 |
| Wells Fargo | maintain | Overweight | 2026-02-06 |
| Truist Securities | maintain | Buy | 2026-02-06 |
| Stifel | maintain | Buy | 2026-02-04 |
| Wells Fargo | maintain | Overweight | 2026-01-26 |
| Wells Fargo | upgrade | Overweight | 2026-01-15 |
| Truist Securities | maintain | Buy | 2025-12-19 |
| Citigroup | maintain | Buy | 2025-11-03 |
Cirrus Logic, Inc. Grades
Below is a summary of the latest institutional grades for Cirrus Logic, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Stifel | maintain | Buy | 2026-02-04 |
| Benchmark | maintain | Buy | 2026-02-04 |
| Barclays | maintain | Equal Weight | 2026-02-04 |
| Benchmark | maintain | Buy | 2025-11-05 |
| Barclays | maintain | Equal Weight | 2025-11-05 |
| Keybanc | maintain | Overweight | 2025-11-05 |
| Stifel | maintain | Buy | 2025-11-05 |
| Susquehanna | maintain | Positive | 2025-10-22 |
| Stifel | maintain | Buy | 2025-10-17 |
| Stifel | maintain | Buy | 2025-09-12 |
Which company has the best grades?
Monolithic Power Systems holds consistently strong ratings, with multiple Buy and Overweight grades from top firms. Cirrus Logic also has solid Buy ratings but features more Equal Weight grades. Investors may view MPWR’s stronger consensus as a sign of higher institutional confidence.
Risks specific to each company
The following categories identify the critical pressure points and systemic threats facing Monolithic Power Systems, Inc. and Cirrus Logic, Inc. in the 2026 market environment:
1. Market & Competition
Monolithic Power Systems, Inc.
- Faces intense competition in semiconductor power electronics with high P/E and P/B ratios signaling possible overvaluation risk.
Cirrus Logic, Inc.
- Operates in mixed-signal processing with more moderate valuation metrics, suggesting steadier market positioning.
2. Capital Structure & Debt
Monolithic Power Systems, Inc.
- Zero debt, excellent interest coverage, but an unfavorable debt-to-equity rating due to valuation concerns.
Cirrus Logic, Inc.
- Low debt-to-equity ratio (0.07), solid interest coverage, reflecting prudent leverage use.
3. Stock Volatility
Monolithic Power Systems, Inc.
- Beta of 1.455 indicates higher volatility and risk relative to the market.
Cirrus Logic, Inc.
- Lower beta of 1.136 implies less price fluctuation and relative stability.
4. Regulatory & Legal
Monolithic Power Systems, Inc.
- Subject to semiconductor industry regulations with exposure to global trade policies.
Cirrus Logic, Inc.
- Faces similar regulatory environments but less complex due to smaller scale and product focus.
5. Supply Chain & Operations
Monolithic Power Systems, Inc.
- Complex global supply chain in power electronics, sensitive to component shortages and geopolitical risks.
Cirrus Logic, Inc.
- Supply chain focused on mixed-signal ICs, possibly more resilient due to diversified end markets.
6. ESG & Climate Transition
Monolithic Power Systems, Inc.
- Increasing pressure to reduce carbon footprint in power electronics manufacturing.
Cirrus Logic, Inc.
- Faces rising expectations for sustainable practices in semiconductor production but with smaller environmental impact.
7. Geopolitical Exposure
Monolithic Power Systems, Inc.
- Significant international sales expose it to US-China trade tensions and regional instability.
Cirrus Logic, Inc.
- International exposure exists but less pronounced, cushioning geopolitical shocks.
Which company shows a better risk-adjusted profile?
Cirrus Logic’s key risks center on market competition and geopolitical exposure, but its moderate valuation and manageable debt provide a sturdy foundation. Monolithic Power Systems, despite zero debt and strong profitability, carries heightened market risk from lofty valuation multiples and stock volatility. The latter’s beta above 1.4 signals amplified sensitivity to market swings. Cirrus Logic’s safer Altman Z-score and stronger Piotroski score further reinforce its superior risk-adjusted stance. The sharp valuation premium on Monolithic Power Systems, combined with a very unfavorable debt-to-equity score, justifies cautious scrutiny despite operational strengths.
Final Verdict: Which stock to choose?
Monolithic Power Systems (MPWR) shines as a cash-generating powerhouse with strong returns on invested capital well above its cost of capital. Its main point of vigilance is the sharply declining ROIC trend, signaling potential future profitability pressures. MPWR suits aggressive growth portfolios willing to embrace some operational risks.
Cirrus Logic (CRUS) boasts a strategic moat via steady and growing profitability, supported by a robust ROIC trend and a more reasonable valuation. Its stable balance sheet and consistent free cash flow offer a safer profile than MPWR. CRUS fits well within GARP portfolios that seek growth with moderate risk.
If you prioritize rapid expansion and can tolerate a margin contraction risk, MPWR’s high return potential outshines CRUS. However, if you seek better stability and a proven, sustainable competitive advantage, CRUS offers a more balanced risk-return profile, commanding a sensible premium valuation.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Monolithic Power Systems, Inc. and Cirrus Logic, Inc. to enhance your investment decisions:
