Microchip Technology (NASDAQ:MCHP) vs. Ichor (NASDAQ:ICHR) Financial Survey

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

Analyst Recommendations

This is a breakdown of current recommendations for Microchip Technology and Ichor, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Microchip Technology 0 6 12 0 2.67
Ichor 0 3 4 0 2.57

Microchip Technology currently has a consensus target price of $103.27, indicating a potential upside of 10.38%. Ichor has a consensus target price of $28.00, indicating a potential upside of 10.98%. Given Ichor’s higher possible upside, analysts plainly believe Ichor is more favorable than Microchip Technology.

Risk & Volatility

Microchip Technology has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500. Comparatively, Ichor has a beta of 2.7, meaning that its share price is 170% more volatile than the S&P 500.

Dividends

Microchip Technology pays an annual dividend of $1.46 per share and has a dividend yield of 1.6%. Ichor does not pay a dividend. Microchip Technology pays out 24.0% of its earnings in the form of a dividend. Microchip Technology has increased its dividend for 17 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Microchip Technology 6.65% 29.27% 8.16%
Ichor 6.07% 22.62% 9.52%

Insider & Institutional Ownership

94.3% of Ichor shares are owned by institutional investors. 2.2% of Microchip Technology shares are owned by company insiders. Comparatively, 2.5% of Ichor shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Microchip Technology and Ichor’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Microchip Technology $5.35 billion 4.16 $355.90 million $6.08 15.39
Ichor $823.61 million 0.69 $57.88 million $2.79 9.04

Microchip Technology has higher revenue and earnings than Ichor. Ichor is trading at a lower price-to-earnings ratio than Microchip Technology, indicating that it is currently the more affordable of the two stocks.

Summary

Microchip Technology beats Ichor on 11 of the 17 factors compared between the two stocks.

About Microchip Technology

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.

About Ichor

Ichor Holdings, Ltd. engages in the design, engineering, and manufacture of fluid delivery subsystems and components for semiconductor capital equipment. It primarily offers gas and chemical delivery subsystems that are used in the manufacturing of semiconductor devices. The company's gas delivery subsystems deliver, monitor, and control gases used in semiconductor manufacturing processes, such as etch and deposition; and chemical delivery subsystems blend and dispense the reactive liquid chemistries used in semiconductor manufacturing processes comprising electroplating and cleaning. It also manufactures precision machined components, weldments, and proprietary products for use in fluid delivery systems. The company operates in the United States, the United Kingdom, Singapore, Malaysia, and Korea. Ichor Holdings, Ltd. was founded in 1999 and is headquartered in Fremont, California.

Receive News & Ratings for Microchip Technology Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Microchip Technology and related companies with MarketBeat.com's FREE daily email newsletter.