Head to Head Comparison: Microchip Technology (MCHP) & The Competition

Microchip Technology (NASDAQ: MCHP) is one of 110 publicly-traded companies in the “Semiconductors” industry, but how does it weigh in compared to its peers? We will compare Microchip Technology to related businesses based on the strength of its analyst recommendations, dividends, earnings, institutional ownership, risk, valuation and profitability.

Analyst Ratings

This is a summary of current ratings and target prices for Microchip Technology and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Microchip Technology 0 4 11 1 2.81
Microchip Technology Competitors 922 4752 8693 360 2.58

Microchip Technology currently has a consensus price target of $99.25, indicating a potential upside of 8.40%. As a group, “Semiconductors” companies have a potential upside of 8.05%. Given Microchip Technology’s stronger consensus rating and higher probable upside, analysts clearly believe Microchip Technology is more favorable than its peers.

Profitability

This table compares Microchip Technology and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Microchip Technology 16.23% 35.48% 14.75%
Microchip Technology Competitors -43.22% 1.16% 0.89%

Dividends

Microchip Technology pays an annual dividend of $1.45 per share and has a dividend yield of 1.6%. Microchip Technology pays out 58.0% of its earnings in the form of a dividend. As a group, “Semiconductors” companies pay a dividend yield of 1.4% and pay out 55.3% of their earnings in the form of a dividend. Microchip Technology has increased its dividend for 15 consecutive years.

Institutional & Insider Ownership

65.4% of shares of all “Semiconductors” companies are held by institutional investors. 2.1% of Microchip Technology shares are held by insiders. Comparatively, 6.7% of shares of all “Semiconductors” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Microchip Technology and its peers top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Microchip Technology $3.41 billion $164.63 million 36.62
Microchip Technology Competitors $4.28 billion $517.06 million 44.07

Microchip Technology’s peers have higher revenue and earnings than Microchip Technology. Microchip Technology is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Microchip Technology has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, Microchip Technology’s peers have a beta of 0.97, suggesting that their average stock price is 3% less volatile than the S&P 500.

Summary

Microchip Technology beats its peers on 9 of the 15 factors compared.

Microchip Technology Company Profile

Microchip Technology Incorporated is engaged in developing, manufacturing and selling specialized semiconductor products used by its customers for a range of embedded control applications. The Company operates through two segments: semiconductor products and technology licensing. In the semiconductor products segment, the Company designs, develops, manufactures and markets microcontrollers, development tools and analog, interface, mixed signal and timing products. Its functional activities include sales, marketing, manufacturing, information technology, human resources, legal and finance. Its product portfolio comprises general purpose and specialized 8-bit, 16-bit, and 32-bit microcontrollers, a spectrum of linear, mixed-signal, power management, thermal management, radio frequency (RF), timing, safety, security, wired connectivity and wireless connectivity devices, as well as serial electrically erasable programmable read-only memories (EEPROMs) and serial flash memories.

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