Home > Comparison > Technology > MPWR vs NVEC
The strategic rivalry between Monolithic Power Systems, Inc. and NVE Corporation shapes innovation in the semiconductor sector. Monolithic Power operates as a diversified semiconductor powerhouse with broad applications, while NVE specializes in niche spintronic technology targeting industrial and medical markets. This head-to-head contrasts scale and product breadth against specialized innovation. This analysis will determine which trajectory offers superior risk-adjusted returns for a balanced technology portfolio.
Table of contents
Companies Overview
Monolithic Power Systems and NVE Corporation stand as notable innovators in the semiconductor industry with distinct market footprints.
Monolithic Power Systems, Inc.: Power Electronics Pioneer
Monolithic Power Systems dominates semiconductor-based power electronics solutions. Its core revenue stems from DC to DC integrated circuits that manage voltage in computing, automotive, and consumer devices. In 2026, the company strategically emphasizes expanding its presence in industrial and automotive markets, leveraging its broad product portfolio and global distribution network.
NVE Corporation: Spintronics Specialist
NVE Corporation focuses on spintronic devices that harness electron spin for data acquisition and transmission. Its revenue relies on sensors and couplers serving factory automation, medical devices, and industrial IoT sectors. In 2026, NVE prioritizes advancing spintronic technology and expanding its niche market applications through R&D and licensing efforts.
Strategic Collision: Similarities & Divergences
Monolithic Power Systems pursues a broad, diversified semiconductor approach while NVE targets a specialized, cutting-edge spintronics niche. Their primary battleground lies in industrial and IoT applications, where innovation drives differentiation. Investors face contrasting profiles: Monolithic offers scale and diversification; NVE offers focused innovation with higher specialization risk.
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) | NVE Corporation (NVEC) |
|---|---|---|
| Revenue | 2.21B | 25.87M |
| Cost of Revenue | 986.2M | 4.24M |
| Operating Expenses | 681.5M | 5.64M |
| Gross Profit | 1.22B | 21.64M |
| EBITDA | 575.8M | 16.32M |
| EBIT | 539.4M | 15.99M |
| Interest Expense | 0 | 0 |
| Net Income | 1.79B | 15.06M |
| EPS | 36.76 | 3.12 |
| Fiscal Year | 2024 | 2025 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison reveals which company operates its business most efficiently and converts revenue into profit effectively.
Monolithic Power Systems, Inc. Analysis
Monolithic Power Systems (MPWR) shows a robust revenue climb from $845M in 2020 to $2.21B in 2024. Net income surged massively to $1.79B in 2024, reflecting exceptional margin expansion. Gross margin holds steady at 55.3%, and net margin skyrocketed to 80.95% last year, signaling impressive cost control despite a 21.2% revenue growth.
NVE Corporation Analysis
NVE Corporation (NVEC) posted revenue of $25.9M in 2025, down 13.2% from prior year. Net income fell to $15.1M with a 58.2% net margin, reflecting strong profitability but recent softness in top-line growth. Gross margin remains exceptional at 83.6%, yet declining revenue and EBIT contraction (-13.6%) highlight weakening momentum.
Verdict: Explosive Growth vs. Margin Resilience
MPWR dominates with explosive revenue and net income growth, alongside expanding margins, proving superior operational leverage. NVEC delivers higher gross and EBIT margins but faces recent revenue headwinds. For investors, MPWR’s growth profile offers dynamic upside, while NVEC appeals as a stable, high-margin business with short-term challenges.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency of the companies compared below:
| Ratios | Monolithic Power Systems, Inc. (MPWR) | NVE Corporation (NVEC) |
|---|---|---|
| ROE | 56.8% | 24.2% |
| ROIC | 16.2% | 21.1% |
| P/E | 16.1 | 20.5 |
| P/B | 9.14 | 4.95 |
| Current Ratio | 5.31 | 28.40 |
| Quick Ratio | 3.89 | 22.03 |
| D/E (Debt-to-Equity) | 0.005 | 0.015 |
| Debt-to-Assets | 0.44% | 1.43% |
| Interest Coverage | 0 (not reported) | 0 (not reported) |
| Asset Turnover | 0.61 | 0.40 |
| Fixed Asset Turnover | 4.17 | 8.91 |
| Payout ratio | 13.5% | 128.4% |
| Dividend yield | 0.84% | 6.28% |
| Fiscal Year | 2024 | 2025 |
Efficiency & Valuation Duel: The Vital Signs
Ratios serve as a company’s financial DNA, revealing hidden risks and operational strengths vital for investment decisions.
Monolithic Power Systems, Inc.
Monolithic Power Systems displays elite profitability with a 56.8% ROE and an 80.95% net margin, signaling operational excellence. Its P/E ratio at 16.09 suggests a fairly valued stock, neither stretched nor cheap. Shareholders receive a modest 0.84% dividend, while the firm reinvests heavily in R&D, fueling future growth potential.
NVE Corporation
NVE Corporation posts solid profitability with a 24.19% ROE and a 58.22% net margin, reflecting efficient capital use. Its P/E of 20.46 indicates a neutral valuation amid strong fundamentals. The firm offers a more generous 6.28% dividend yield, balancing returns with continued investment in R&D for sustainable growth.
Balanced Profitability Meets Valuation Discipline
Both companies exhibit favorable ratios and strong fundamentals, but Monolithic Power excels in profitability at a more moderate valuation. NVE delivers higher dividend income but trades at a slightly richer multiple. Investors prioritizing growth might favor Monolithic’s reinvestment profile, while income-focused profiles may lean toward NVE.
Which one offers the Superior Shareholder Reward?
I see Monolithic Power Systems (MPWR) delivers modest dividends with a 0.84% yield and a 13.5% payout ratio, backed by strong free cash flow coverage (~81%). Its buybacks are consistent but moderate. NVE Corporation (NVEC) yields a striking 6.28%, yet its payout ratio exceeds 100%, indicating dividend sustainability risks. NVEC relies heavily on dividends over buybacks, contrasting MPWR’s balanced approach. Historically, MPWR’s lower payout and robust free cash flow underpin a more sustainable total return model. I conclude MPWR offers superior long-term shareholder reward versus NVEC’s riskier high yield in 2026.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of Monolithic Power Systems, Inc. and NVE Corporation, highlighting their financial strengths and valuation strategies:
Both companies share identical overall and DCF scores, reflecting similar long-term cash flow expectations. They excel equally in ROE and ROA, demonstrating efficient equity and asset utilization. Both maintain favorable debt-to-equity profiles, signaling prudent leverage management. However, Monolithic Power Systems lags in price-to-book valuation, indicating a potential market overvaluation or intangible asset premium, whereas NVE Corporation holds a more balanced valuation mix. Overall, NVE presents a slightly more balanced financial profile, while Monolithic leans on operational efficiency amid valuation challenges.
Bankruptcy Risk: Solvency Showdown
Monolithic Power Systems and NVE Corporation both register Altman Z-Scores deep in the safe zone, indicating minimal bankruptcy risk and robust solvency for the current economic cycle:
Financial Health: Quality of Operations
Monolithic Power Systems scores a 4, while NVE Corporation edges slightly higher with a 5 on the Piotroski F-Score scale, both falling into the average category. This suggests stable but not peak internal financial metrics, with no immediate red flags but room for operational improvements:
How are the two companies positioned?
This section dissects the operational DNA of MPWR and NVEC by comparing their revenue distribution by segment alongside their strengths and weaknesses. The final objective confronts their economic moats to identify which business model delivers the most resilient, sustainable competitive advantage today.
Revenue Segmentation: The Strategic Mix
This visual comparison dissects how Monolithic Power Systems and NVE Corporation diversify their income streams and highlights where their primary sector bets lie:
Monolithic Power Systems leans heavily on DC To DC Products, generating $1.72B in 2023, dwarfing its $102M Lighting Control segment. This concentration anchors its position in power management infrastructure. Conversely, NVE Corporation’s revenue pivots around its Product segment at $25.9M in 2022, with minimal Contract R&D contribution, reflecting a narrower but focused portfolio. MPWR’s dominance in a core segment suggests ecosystem lock-in, while NVEC faces less diversification risk but limited scale.
Strengths and Weaknesses Comparison
This table compares the Strengths and Weaknesses of Monolithic Power Systems, Inc. (MPWR) and NVE Corporation (NVEC):
MPWR Strengths
- High net margin at 80.95%
- Strong ROE of 56.8%
- Favorable ROIC at 16.22%
- Excellent quick ratio at 3.89
- Minimal debt and infinite interest coverage
- Large revenue base in DC to DC products and broad Asia presence
NVEC Strengths
- Strong ROIC of 21.14%
- Favorable ROE at 24.19%
- High fixed asset turnover at 8.91
- Infinite interest coverage with low debt
- Significant product revenue focus
- Balanced geographic exposure including US and Europe
MPWR Weaknesses
- Unfavorable WACC at 10.7% above ROIC
- High PB ratio at 9.14 indicating premium valuation
- Very high current ratio at 5.31 may signal inefficient asset use
- Dividend yield low at 0.84%
- Asset turnover neutral at 0.61
- Concentrated revenue in few product lines and strong China reliance
NVEC Weaknesses
- Asset turnover low at 0.4
- Unfavorable PB at 4.95
- Extremely high current ratio at 28.4 suggests liquidity inefficiency
- Dividend yield neutral at 6.28%
- WACC neutral at 9.57% slightly below ROIC
- Smaller revenue scale with less product diversification
Overall, both companies display strong profitability and low leverage, showing operational efficiency and financial stability. MPWR’s concentrated product and geographic revenue could increase risk, while NVEC’s liquidity ratios highlight potential inefficiencies. These factors influence each company’s strategic focus on growth and capital allocation.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat shields long-term profits from relentless competition and market pressures. Here is how Monolithic Power Systems and NVE Corporation defend their turf:
Monolithic Power Systems, Inc.: Integrated Circuitry and Scale Moat
I see MPWR’s moat rooted in cost advantage and scale within power electronics. Its high ROIC above WACC by 5.5% reflects efficient capital use and margin stability. Expanding automotive and industrial markets will deepen its moat in 2026.
NVE Corporation: Advanced Spintronics Innovation Moat
NVEC relies on proprietary spintronics technology, a rare intangible asset moat. Compared to MPWR, NVEC’s ROIC advantage is wider at 11.6%, signaling superior value creation. Growth hinges on industrial IoT adoption and medical device breakthroughs.
Cost Efficiency vs. Technological Uniqueness: The Moat Showdown
Both firms boast durable moats with growing ROIC trends, yet NVEC’s technological edge and 11.6% ROIC premium establish a deeper moat. NVEC is better positioned to fend off rivals and capitalize on niche market expansions.
Which stock offers better returns?
Over the past year, Monolithic Power Systems, Inc. surged with strong price gains and accelerating momentum, while NVE Corporation faced a prolonged decline despite recent modest recovery.
Trend Comparison
Monolithic Power Systems, Inc. shows a robust 70.78% price increase over 12 months, marking a bullish trend with accelerating gains and high volatility. The stock peaked at 1173.22 before recent strong upward momentum.
NVE Corporation experienced a 17.56% decline over the same period, confirming a bearish trend despite an acceleration phase and a recent 12.98% partial rebound. Volatility remains low compared to MPWR.
MPWR outperformed NVEC decisively, delivering the highest market returns with sustained acceleration and significant price appreciation.
Target Prices
Monolithic Power Systems, Inc. shows a solid target price consensus from verified analysts.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| Monolithic Power Systems, Inc. | 1025 | 1375 | 1214.29 |
Analysts foresee a 3.5% upside from the current price of $1173.22, signaling modest growth potential. No verified target price data is available for NVE Corporation.
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How do institutions grade them?
Here is a summary of the recent institutional grades for the two companies:
Monolithic Power Systems, Inc. Grades
The following table lists recent grades from reliable grading companies for Monolithic Power Systems, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| 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 |
| Keybanc | Maintain | Overweight | 2025-10-31 |
| TD Cowen | Maintain | Buy | 2025-10-31 |
| Rosenblatt | Maintain | Neutral | 2025-10-31 |
| Keybanc | Maintain | Overweight | 2025-10-23 |
| Wells Fargo | Maintain | Equal Weight | 2025-10-20 |
| Stifel | Maintain | Buy | 2025-10-17 |
NVE Corporation Grades
No reliable institutional grading data is available for NVE Corporation.
Which company has the best grades?
Monolithic Power Systems, Inc. has consistently received strong grades such as Buy and Overweight from multiple reputable firms. NVE Corporation lacks any recent institutional grades for comparison. Investors may view Monolithic Power Systems’ broad analyst support as a positive signal of confidence.
Risks specific to each company
The following categories identify the critical pressure points and systemic threats facing both firms in the 2026 market environment:
1. Market & Competition
Monolithic Power Systems, Inc.
- Operates in highly competitive semiconductor sector with diversified end markets. Faces pressure from large incumbents and rapid innovation cycles.
NVE Corporation
- Niche spintronics technology limits direct competitors but risks from emerging disruptive technologies remain significant.
2. Capital Structure & Debt
Monolithic Power Systems, Inc.
- Extremely low debt (D/E 0.01), strong interest coverage. WACC is slightly elevated at 10.7%, reflecting higher capital costs.
NVE Corporation
- Also maintains minimal debt (D/E 0.01) and infinite interest coverage. WACC at 9.57% is more favorable, indicating cheaper capital.
3. Stock Volatility
Monolithic Power Systems, Inc.
- Beta of 1.455 shows higher volatility than market; price range wide between $439 and $1,189.
NVE Corporation
- Beta of 1.219 indicates moderate volatility; price range narrower between $51.5 and $82.3, less prone to swings.
4. Regulatory & Legal
Monolithic Power Systems, Inc.
- Exposed to global technology export controls and IP litigation risks in semiconductor space.
NVE Corporation
- Faces regulatory scrutiny mainly around nanotech patents and compliance in medical device markets.
5. Supply Chain & Operations
Monolithic Power Systems, Inc.
- Complex supply chain spanning Asia and North America, vulnerable to geopolitical disruptions and component shortages.
NVE Corporation
- Smaller scale with focused manufacturing reduces complexity but limits operational flexibility and scale economies.
6. ESG & Climate Transition
Monolithic Power Systems, Inc.
- Increasing pressure to demonstrate sustainable practices in semiconductor fabrication and product lifecycle.
NVE Corporation
- ESG risks lower due to smaller footprint, but must address emerging regulatory demands in medical tech and IoT sectors.
7. Geopolitical Exposure
Monolithic Power Systems, Inc.
- Significant exposure to China and Taiwan markets, heightening risk amid US-China tensions.
NVE Corporation
- Primarily US-based with limited international sales, reducing geopolitical risk but limiting growth opportunities.
Which company shows a better risk-adjusted profile?
Monolithic Power Systems’ principal risk lies in market competition and geopolitical exposure, while NVE’s greatest risk is operational scale and niche market vulnerability. NVE’s lower beta and WACC suggest a more stable risk profile. However, Monolithic Power’s diversified markets and stronger supply chain scale offer resilience. The elevated WACC and geopolitical tension justify caution for MPWR despite robust financials. Overall, NVE exhibits a slightly better risk-adjusted profile given its focused business and lower volatility.
Final Verdict: Which stock to choose?
Monolithic Power Systems (MPWR) wields unmatched operational efficiency and a durable competitive advantage, evidenced by its strong ROIC growth outpacing WACC. Its superpower lies in value creation through disciplined capital allocation. A point of vigilance remains its elevated price-to-book ratio, which could temper near-term valuation appeal. MPWR suits aggressive growth portfolios aiming for superior profitability expansion.
NVE Corporation (NVEC) commands a strategic moat through its high gross and EBIT margins, supported by recurring revenue safety and a pristine balance sheet. Its exceptionally high current and quick ratios signal robust liquidity, offering a safer profile than MPWR. NVEC fits well in GARP portfolios that seek growth with a more conservative risk posture.
If you prioritize aggressive growth driven by operational excellence and value creation, MPWR is the compelling choice due to its accelerating profitability and strong capital efficiency. However, if you seek a steadier investment with superior liquidity and margin durability, NVEC offers better stability and a more conservative risk profile despite recent revenue softness. Both demonstrate very favorable moats but cater to distinct investor avatars.
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 NVE Corporation to enhance your investment decisions:
