Microchip Technology (NASDAQ:MCHP) Vs. NVDA, AVGO, INTC, TXN, ADI, MU, MRVL, MPWR, SWKS, and FSLR
Should you be buying Microchip Technology stock or one of its competitors? The main competitors of Microchip Technology include NVIDIA (NVDA), Broadcom (AVGO), Intel (INTC), Texas Instruments (TXN), Analog Devices (ADI), Micron Technology (MU), Marvell Technology (MRVL), Monolithic Power Systems (MPWR), Skyworks Solutions (SWKS), and First Solar (FSLR). These companies are all part of the "semiconductors" industry.
Microchip Technology vs.
Microchip Technology (NASDAQ:MCHP) and NVIDIA (NASDAQ:NVDA) are both large-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, media sentiment, community ranking, analyst recommendations, profitability, dividends, valuation and earnings.
NVIDIA has higher revenue and earnings than Microchip Technology. Microchip Technology is trading at a lower price-to-earnings ratio than NVIDIA, indicating that it is currently the more affordable of the two stocks.
Microchip Technology pays an annual dividend of $1.01 per share and has a dividend yield of 1.5%. NVIDIA pays an annual dividend of $0.16 per share and has a dividend yield of 0.1%. Microchip Technology pays out 44.6% of its earnings in the form of a dividend. NVIDIA pays out 4.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
NVIDIA has a net margin of 36.24% compared to Microchip Technology's net margin of 18.85%. NVIDIA's return on equity of 42.99% beat Microchip Technology's return on equity.
89.4% of Microchip Technology shares are held by institutional investors. Comparatively, 55.2% of NVIDIA shares are held by institutional investors. 2.0% of Microchip Technology shares are held by insiders. Comparatively, 4.5% of NVIDIA shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Microchip Technology currently has a consensus price target of $94.85, indicating a potential upside of 41.91%. NVIDIA has a consensus price target of $317.81, indicating a potential upside of 82.76%. Given NVIDIA's stronger consensus rating and higher probable upside, analysts clearly believe NVIDIA is more favorable than Microchip Technology.
Microchip Technology has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500. Comparatively, NVIDIA has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500.
In the previous week, NVIDIA had 1 more articles in the media than Microchip Technology. MarketBeat recorded 19 mentions for NVIDIA and 18 mentions for Microchip Technology. Microchip Technology's average media sentiment score of 0.05 beat NVIDIA's score of -0.08 indicating that Microchip Technology is being referred to more favorably in the media.
NVIDIA received 1723 more outperform votes than Microchip Technology when rated by MarketBeat users. Likewise, 71.58% of users gave NVIDIA an outperform vote while only 70.16% of users gave Microchip Technology an outperform vote.
Summary
NVIDIA beats Microchip Technology on 17 of the 20 factors compared between the two stocks.
New MarketBeat Followers Over Time
This chart shows the number of new MarketBeat users adding MCHP and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Media Sentiment Over Time
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
Microchip Technology (NASDAQ:MCHP) vs. Its Competitors
Microchip Technology Competitors List
