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 $66.6B against $41.0B — 1.6× the size. Monolithic Power Systems, Inc. trades at the lower P/E: 83.3× against 117×. Monolithic Power Systems, Inc. grew revenue faster over the last twelve months: 28.7% against 20.9%. Monolithic Power Systems, Inc. has the higher net margin (24.5% vs 7.17%) and the higher return on invested capital (23.7% vs 4.30%). Both pay a dividend; Microchip Technology Incorporated yields more (2.06% vs 0.68%). Across the 23 metrics below, Monolithic Power Systems, Inc. leads on 13 and Microchip Technology Incorporated on 10.

Valuation

Metric MCHP MPWR Semiconductors median
P/E 117.45 83.33 49.41
P/S 8.33 20.53 8.58
P/B 6.62 17.25 5.49
Price to free cash flow 38.43 174.99 47.02
EV/EBITDA 33.01 65.87 30.78
EV/Sales 9.71 20.10 8.79
Earnings yield 0.85% 1.20% 0.62%
Free cash flow yield 2.60% 0.57% 0.59%

Profitability

Metric MCHP MPWR Semiconductors median
Gross margin 60.19% 55.20% 52.25%
Operating margin 15.52% 28.72% 4.85%
Net margin 7.17% 24.50% 4.77%
Free cash flow margin 21.69% 11.88% 8.65%
Return on equity 5.52% 21.98% 3.11%
Return on assets 2.50% 18.52% 1.91%
Return on invested capital 4.30% 23.68% 2.46%

Growth

Metric MCHP MPWR Semiconductors median
Revenue growth (TTM) 20.93% 28.67% 16.66%
EPS growth (last fiscal year) 2,300.00% (65.15%) —
Revenue growth, 5-year CAGR (2.82%) 27.00% 5.60%
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 0.05
Current ratio 1.92 4.98 3.35
Net debt to EBITDA 4.33 (1.62) 0.58

Dividend

Metric MCHP MPWR Semiconductors median
Dividend yield 2.06% 0.68% 1.93%
Payout ratio 0.32 0.38 0.00

Size

Metric MCHP MPWR Semiconductors median
Market cap 41.04b 66.58b 5.67b

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