Microchip Technology Incorporated (MCHP) vs STMicroelectronics N.V. (STM)

Microchip Technology Incorporated and STMicroelectronics N.V. are both Semiconductors companies. STMicroelectronics N.V. is the larger, with a market value of $46.6B against $41.0B — 1.1× the size. STMicroelectronics N.V. trades at the lower P/E: 98.0× against 117×. Microchip Technology Incorporated grew revenue faster over the last twelve months: 20.9% against 10.5%. Microchip Technology Incorporated has the higher net margin (7.17% vs 3.56%) and the higher return on invested capital (4.30% vs 2.19%). Both pay a dividend; Microchip Technology Incorporated yields more (2.06% vs 0.57%). Across the 23 metrics below, Microchip Technology Incorporated leads on 13 and STMicroelectronics N.V. on 10.

Valuation

Metric MCHP STM Semiconductors median
P/E 117.45 97.98 49.41
P/S 8.33 3.53 8.58
P/B 6.62 2.56 5.49
Price to free cash flow 38.43 202.74 47.02
EV/EBITDA 33.01 17.90 30.78
EV/Sales 9.71 3.38 8.79
Earnings yield 0.85% 1.02% 0.62%
Free cash flow yield 2.60% 0.49% 0.59%

Profitability

Metric MCHP STM Semiconductors median
Gross margin 60.19% 34.29% 52.25%
Operating margin 15.52% 4.29% 4.85%
Net margin 7.17% 3.56% 4.77%
Free cash flow margin 21.69% 1.74% 8.65%
Return on equity 5.52% 2.59% 3.11%
Return on assets 2.50% 1.78% 1.91%
Return on invested capital 4.30% 2.19% 2.46%

Growth

Metric MCHP STM Semiconductors median
Revenue growth (TTM) 20.93% 10.49% 16.66%
EPS growth (last fiscal year) 2,300.00% (89.16%) —
Revenue growth, 5-year CAGR (2.82%) 2.92% 5.60%
Net income growth, 5-year CAGR (19.41%) (31.57%) 0.00%

Health

Metric MCHP STM Semiconductors median
Debt to equity 0.83 0.22 0.05
Current ratio 1.92 2.78 3.35
Net debt to EBITDA 4.33 (1.37) 0.58

Dividend

Metric MCHP STM Semiconductors median
Dividend yield 2.06% 0.57% 1.93%
Payout ratio 0.32 0.05 0.00

Size

Metric MCHP STM Semiconductors median
Market cap 41.04b 46.60b 5.67b

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