Microchip Technology Incorporated (MCHP) vs Monolithic Power Systems, Inc. (MPWR)

Microchip Technology Incorporated and Monolithic Power Systems, Inc. are both Semiconductors companies. Monolithic Power Systems, Inc. is the larger, with a market value of $55.2B against $35.2B — 1.6× the size. Microchip Technology Incorporated trades at the lower P/E: 49.8× against 63.4×. Monolithic Power Systems, Inc. grew revenue faster over the last twelve months: 40.5% against 33.0%. Monolithic Power Systems, Inc. has the higher net margin (23.9% vs 13.0%) and the higher return on invested capital (26.1% vs 6.25%). Both pay a dividend; Microchip Technology Incorporated yields more (2.75% vs 0.65%). Across the 23 metrics below, Microchip Technology Incorporated leads on 12 and Monolithic Power Systems, Inc. on 11.

Valuation

Metric MCHP MPWR Semiconductors median
P/E 49.82 63.39 36.98
P/S 6.43 15.16 6.03
P/B 5.42 15.17 3.87
Price to free cash flow 24.75 93.73 43.80
EV/EBITDA 28.57 47.70 20.84
EV/Sales 7.68 14.86 5.07
Earnings yield 2.01% 1.58% 1.13%
Free cash flow yield 4.04% 1.07% 1.06%

Profitability

Metric MCHP MPWR Semiconductors median
Gross margin 62.70% 55.26% 52.21%
Operating margin 20.89% 29.50% 5.47%
Net margin 12.97% 23.89% 4.26%
Free cash flow margin 25.97% 16.30% 5.02%
Return on equity 10.90% 24.47% 2.86%
Return on assets 4.99% 20.12% 2.03%
Return on invested capital 6.25% 26.08% 2.28%

Growth

Metric MCHP MPWR Semiconductors median
Revenue growth (TTM) 33.02% 40.49% 17.60%
EPS growth (last fiscal year) 2,300.00% (60.89%) 27.66%
Revenue growth, 5-year CAGR (2.82%) 27.00% 5.14%
Net income growth, 5-year CAGR (19.41%) 30.47% 0.00%

Health

Metric MCHP MPWR Semiconductors median
Debt to equity 0.83 0.00 0.12
Current ratio 2.24 3.70 3.39
Net debt to EBITDA 4.33 (1.62) 0.53

Dividend

Metric MCHP MPWR Semiconductors median
Dividend yield 2.75% 0.65% 1.62%
Payout ratio 1.38 0.42 0.38

Size

Metric MCHP MPWR Semiconductors median
Market cap 35.21b 55.18b 5.69b

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