Microchip Technology Incorporated (MCHP) vs Skyworks Solutions, Inc. (SWKS)

Microchip Technology Incorporated and Skyworks Solutions, Inc. are both Semiconductors companies. Microchip Technology Incorporated is the larger, with a market value of $33.8B against $20.6B — 1.6× the size. Microchip Technology Incorporated trades at the lower P/E: 45.0× against 75.4×. Microchip Technology Incorporated grew revenue faster over the last twelve months: 33.0% against −3.11%. Microchip Technology Incorporated has the higher net margin (13.0% vs 4.35%) and the higher return on invested capital (6.25% vs 2.43%). Both pay a dividend; Microchip Technology Incorporated yields more (2.93% vs 2.44%). Across the 23 metrics below, Microchip Technology Incorporated leads on 16 and Skyworks Solutions, Inc. on 7.

Valuation

Metric MCHP SWKS Semiconductors median
P/E 45.02 75.44 44.73
P/S 6.02 3.30 6.85
P/B 5.08 2.28 5.06
Price to free cash flow 23.18 65.69 57.33
EV/EBITDA 21.87 17.42 22.12
EV/Sales 7.27 3.39 6.85
Earnings yield 2.22% 1.33% 0.84%
Free cash flow yield 4.31% 1.52% 0.81%

Profitability

Metric MCHP SWKS Semiconductors median
Gross margin 62.70% 40.78% 52.12%
Operating margin 20.89% 5.47% 7.34%
Net margin 12.97% 4.35% 3.87%
Free cash flow margin 25.97% 5.02% 4.86%
Return on equity 10.90% 0.00% 1.15%
Return on assets 4.99% 1.98% 2.03%
Return on invested capital 6.25% 2.43% 2.66%

Growth

Metric MCHP SWKS Semiconductors median
Revenue growth (TTM) 33.02% (3.11%) 17.60%
EPS growth (last fiscal year) 2,300.00% (63.00%) 27.88%
Revenue growth, 5-year CAGR (2.82%) (4.97%) 5.14%
Net income growth, 5-year CAGR (19.41%) (35.13%) 0.00%

Health

Metric MCHP SWKS Semiconductors median
Debt to equity 0.83 0.43 0.13
Current ratio 2.24 3.34 3.35
Net debt to EBITDA 4.33 (0.20) 0.58

Dividend

Metric MCHP SWKS Semiconductors median
Dividend yield 2.93% 2.44% 1.37%
Payout ratio 1.33 1.86 0.40

Size

Metric MCHP SWKS Semiconductors median
Market cap 33.81b 20.58b 5.52b

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