Microchip Technology (NASDAQ: MCHP) is one of 104 public companies in the “Semiconductors” industry, but how does it contrast to its competitors? We will compare Microchip Technology to related businesses based on the strength of its profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Valuation and Earnings

This table compares Microchip Technology and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Microchip Technology $3.58 billion $1.25 billion 50.70
Microchip Technology Competitors $4.28 billion $1.35 billion 24.00

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Microchip Technology and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Microchip Technology 0 6 12 0 2.67
Microchip Technology Competitors 920 4779 8680 363 2.58

Microchip Technology currently has a consensus price target of $91.59, indicating a potential downside of 3.39%. As a group, “Semiconductors” companies have a potential upside of 8.06%. Given Microchip Technology’s competitors higher probable upside, analysts clearly believe Microchip Technology has less favorable growth aspects than its competitors.

Profitability

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

Net Margins Return on Equity Return on Assets
Microchip Technology 12.53% 34.33% 13.56%
Microchip Technology Competitors -46.54% 1.08% 0.76%

Institutional & Insider Ownership

65.2% 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 hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Microchip Technology has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Microchip Technology’s competitors have a beta of 1.05, indicating that their average share price is 5% more volatile than the S&P 500.

Dividends

Microchip Technology pays an annual dividend of $1.45 per share and has a dividend yield of 1.5%. Microchip Technology pays out 77.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Semiconductors” companies pay a dividend yield of 1.4% and pay out 58.0% of their earnings in the form of a dividend. Microchip Technology has increased its dividend for 15 consecutive years.

Summary

Microchip Technology competitors beat Microchip Technology 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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