Head-To-Head Analysis: Microchip Technology (MCHP) and MoSys (MOSY)

Microchip Technology (NASDAQ: MCHP) and MoSys (NASDAQ:MOSY) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.

Dividends

Microchip Technology pays an annual dividend of $1.45 per share and has a dividend yield of 1.6%. MoSys does not pay a dividend. Microchip Technology has increased its dividend for 16 consecutive years.

Volatility & Risk

Microchip Technology has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, MoSys has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500.

Institutional & Insider Ownership

8.9% of MoSys shares are owned by institutional investors. 2.1% of Microchip Technology shares are owned by company insiders. Comparatively, 2.2% of MoSys shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Microchip Technology and MoSys’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Microchip Technology $3.98 billion 5.40 $255.40 million N/A N/A
MoSys $8.84 million 1.59 -$10.66 million N/A N/A

Microchip Technology has higher revenue and earnings than MoSys.

Analyst Ratings

This is a summary of recent recommendations for Microchip Technology and MoSys, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Microchip Technology 0 3 12 0 2.80
MoSys 0 0 1 0 3.00

Microchip Technology presently has a consensus target price of $112.77, suggesting a potential upside of 23.29%. Given Microchip Technology’s higher probable upside, equities research analysts plainly believe Microchip Technology is more favorable than MoSys.

Profitability

This table compares Microchip Technology and MoSys’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Microchip Technology 6.41% 38.62% 16.04%
MoSys -49.97% -59.22% -20.56%

Summary

Microchip Technology beats MoSys on 11 of the 14 factors compared between the two stocks.

Microchip Technology Company Profile

Microchip Technology Incorporated develops, manufactures, and sells semiconductor products for various embedded control applications. The company offers general purpose and specialized 8-bit, 16-bit, and 32-bit microcontrollers; 32-bit microprocessors; and microcontrollers for automotive networking, computing, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity. It also provides development tools that enable system designers to program microcontroller products for specific applications; analog, interface, mixed signal, and timing products comprising power management, linear, mixed-signal, high-voltage, thermal management, radio frequency (RF), drivers, safety, security, timing, USB, Ethernet, wireless, and other interface products; and memory products consisting of serial electrically erasable programmable read-only memory, serial flash memories, parallel flash memories, and serial static random access memories for the production of very small footprint devices. In addition, the company licenses its SuperFlash embedded flash and Smartbits one time programmable NVM technologies to foundries, integrated device manufacturers, and design partners for use in the manufacture of microcontroller products, gate array, RF, and analog products that require embedded non-volatile memory, as well as provides engineering services. Further, it provides wafer foundry and assembly and test subcontracting manufacturing services; and application specific integrated circuits, complex programmable logic devices, and aerospace products. It serves automotive, communications, computing, consumer, aerospace, defense, safety, security, medical, and industrial control markets. The company sells its products through a network of direct sales personnel and distributors in the Americas, Europe, and Asia. Microchip Technology Incorporated was founded in 1989 and is headquartered in Chandler, Arizona.

MoSys Company Profile

MoSys, Inc., a semiconductor company, develops and sells integrated circuits (ICs) for the high-speed cloud networking, communications, security appliance, video, monitor and test, data center, and computing markets. The company offers memory-dominated ICs under the Bandwidth Engine and Programmable Search Engine names. It serves networking, communications, and data center equipment providers, as well as their subsystem and component vendors; and original equipment manufacturers through direct sales personnel, sales representatives, and distributors in North America, Taiwan, Japan, and internationally. The company was founded in 1991 and is headquartered in San Jose, California.

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