GlobalFoundries Inc. (GFS) vs Microchip Technology Incorporated (MCHP)

GlobalFoundries Inc. and Microchip Technology Incorporated are both Semiconductors companies. Microchip Technology Incorporated is the larger, with a market value of $40.3B against $26.8B — 1.5× the size. GlobalFoundries Inc. trades at the lower P/E: 35.9× against 110×. Microchip Technology Incorporated grew revenue faster over the last twelve months: 20.9% against 1.40%. GlobalFoundries Inc. has the higher net margin (10.3% vs 7.17%) and the higher return on invested capital (4.51% vs 4.30%). Both pay a dividend; Microchip Technology Incorporated yields more (2.47% vs 0.51%). Across the 22 metrics below, GlobalFoundries Inc. leads on 16 and Microchip Technology Incorporated on 6.

Valuation

Metric GFS MCHP Semiconductors median
P/E 35.91 110.18 45.58
P/S 3.69 7.82 7.63
P/B 2.16 6.21 4.90
Price to free cash flow 36.04 36.05 48.34
EV/EBITDA 12.35 31.26 28.36
EV/Sales 3.59 9.19 7.15
Earnings yield 2.78% 0.91% 0.75%
Free cash flow yield 2.77% 2.77% 0.67%

Profitability

Metric GFS MCHP Semiconductors median
Gross margin 27.14% 60.19% 52.28%
Operating margin 11.59% 15.52% 4.76%
Net margin 10.32% 7.17% 4.26%
Free cash flow margin 13.07% 21.69% 8.47%
Return on equity 6.13% 5.52% 2.59%
Return on assets 4.25% 2.50% 1.78%
Return on invested capital 4.51% 4.30% 2.27%

Growth

Metric GFS MCHP Semiconductors median
Revenue growth (TTM) 1.40% 20.93% 16.92%
EPS growth (last fiscal year) 431.25% 2,300.00% 27.17%
Revenue growth, 5-year CAGR 6.96% (2.82%) 5.83%
Net income growth, 5-year CAGR 0.00% (19.41%) 0.00%

Health

Metric GFS MCHP Semiconductors median
Debt to equity 0.14 0.83 0.05
Current ratio 2.48 1.92 3.28
Net debt to EBITDA (0.68) 4.33 0.58

Dividend

Metric GFS MCHP Semiconductors median
Dividend yield 0.51% 2.47% 1.19%
Payout ratio 0.19 2.72 0.40

Size

Metric GFS MCHP Semiconductors median
Market cap 26.76b 40.32b 5.43b

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