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

Microchip Technology Incorporated and STMicroelectronics N.V. are both Semiconductors companies. Microchip Technology Incorporated and STMicroelectronics N.V. are of similar size ($35.8B and $35.2B). Microchip Technology Incorporated trades at the lower P/E: 49.8× against 70.6×. Microchip Technology Incorporated grew revenue faster over the last twelve months: 33.0% against 15.9%. Microchip Technology Incorporated has the higher net margin (13.0% vs 3.80%) and the higher return on invested capital (6.25% vs 2.95%). Both pay a dividend; Microchip Technology Incorporated yields more (2.75% vs 0.89%). Across the 23 metrics below, Microchip Technology Incorporated leads on 15 and STMicroelectronics N.V. on 8.

Valuation

Metric MCHP STM Semiconductors median
P/E 49.82 70.56 36.98
P/S 6.43 2.76 6.03
P/B 5.42 2.06 3.87
Price to free cash flow 24.75 165.34 43.80
EV/EBITDA 28.57 14.71 20.84
EV/Sales 7.68 2.66 5.07
Earnings yield 2.01% 1.42% 1.13%
Free cash flow yield 4.04% 0.60% 1.06%

Profitability

Metric MCHP STM Semiconductors median
Gross margin 62.70% 35.36% 52.21%
Operating margin 20.89% 5.48% 5.47%
Net margin 12.97% 3.80% 4.26%
Free cash flow margin 25.97% 0.00% 5.02%
Return on equity 10.90% 2.86% 2.86%
Return on assets 4.99% 2.03% 2.03%
Return on invested capital 6.25% 2.95% 2.28%

Growth

Metric MCHP STM Semiconductors median
Revenue growth (TTM) 33.02% 15.93% 17.60%
EPS growth (last fiscal year) 2,300.00% (89.16%) 27.66%
Revenue growth, 5-year CAGR (2.82%) 2.92% 5.14%
Net income growth, 5-year CAGR (19.41%) (31.57%) 0.00%

Health

Metric MCHP STM Semiconductors median
Debt to equity 0.83 0.16 0.12
Current ratio 2.24 3.13 3.39
Net debt to EBITDA 4.33 (1.37) 0.53

Dividend

Metric MCHP STM Semiconductors median
Dividend yield 2.75% 0.89% 1.62%
Payout ratio 1.38 0.64 0.38

Size

Metric MCHP STM Semiconductors median
Market cap 35.21b 35.79b 5.69b

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