Comprehensive Stock Comparison
Compare Microchip Technology Incorporated (MCHP) vs Analog Devices, Inc. (ADI) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | ADI | 16.9% revenue growth vs MCHP's -42.3% |
| Value | ADI | Lower P/E (31.5x vs 47.6x) |
| Quality / Margins | ADI | 23.0% net margin vs MCHP's -2.2% |
| Stability / Safety | ADI | Beta 1.55 vs MCHP's 2.17, lower leverage |
| Dividends | MCHP | 2.4% yield, 5-year raise streak, vs ADI's 1.1% |
| Momentum (1Y) | ADI | +56.4% vs MCHP's +29.9% |
| Efficiency (ROA) | ADI | 5.6% ROA vs MCHP's -0.7%, ROIC 5.4% vs 1.8% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Microchip Technology is a semiconductor company that designs and manufactures microcontrollers, analog chips, and other embedded control solutions for industrial, automotive, and consumer applications. It generates revenue primarily through microcontroller sales (~50% of revenue) and analog/power management chips (~30%), with the remainder from memory, FPGA, and development tools. The company's moat lies in its extensive catalog of over 100,000 products and deep customer relationships in mission-critical embedded systems where reliability and long-term availability are paramount.
Analog Devices is a semiconductor company that designs and manufactures analog, mixed-signal, and digital signal processing integrated circuits for industrial, automotive, communications, and consumer markets. It generates revenue primarily through sales of data converters (~30%), power management ICs (~25%), amplifiers (~15%), and RF/microwave components (~15%) to industrial and automotive customers. The company's moat lies in its deep expertise in high-performance analog design—a difficult-to-master discipline—and its extensive portfolio of precision components that are deeply embedded in mission-critical systems.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
ADI leads in 5 of 6 categories — strongest in Financial Metrics and Valuation Metrics. 1 category is tied.
Financial Metrics (TTM)
ADI is the larger business by revenue, generating $11.8B annually — 2.7x MCHP's $4.4B. ADI is the more profitable business, keeping 23.0% of every revenue dollar as net income compared to MCHP's -2.2%. On growth, ADI holds the edge at +30.4% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | MCHPMicrochip Technol… | ADIAnalog Devices, I… |
|---|---|---|
| RevenueTrailing 12 months | $4.4B | $11.8B |
| EBITDAEarnings before interest/tax | $881M | $5.4B |
| Net IncomeAfter-tax profit | -$97M | $2.7B |
| Free Cash FlowCash after capex | $820M | $4.6B |
| Gross MarginGross profit ÷ Revenue | +51.6% | +62.8% |
| Operating MarginEBIT ÷ Revenue | +4.1% | +29.2% |
| Net MarginNet income ÷ Revenue | -2.2% | +23.0% |
| FCF MarginFCF ÷ Revenue | +18.8% | +38.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +15.6% | +30.4% |
| EPS Growth (YoY)Latest quarter vs prior year | +160.2% | +116.7% |
Valuation Metrics
On an enterprise value basis, ADI's 36.5x EV/EBITDA is more attractive than MCHP's 43.1x.
| Metric | MCHPMicrochip Technol… | ADIAnalog Devices, I… |
|---|---|---|
| Market CapShares × price | $40.2B | $173.7B |
| Enterprise ValueMkt cap + debt − cash | $45.1B | $179.9B |
| Trailing P/EPrice ÷ TTM EPS | -9999.00x | 78.02x |
| Forward P/EPrice ÷ next-FY EPS est. | 47.63x | 31.50x |
| PEG RatioP/E ÷ EPS growth rate | — | 11.45x |
| EV / EBITDAEnterprise value multiple | 43.10x | 36.47x |
| Price / SalesMarket cap ÷ Revenue | 9.14x | 15.76x |
| Price / BookPrice ÷ Book value/share | 5.67x | 5.23x |
| Price / FCFMarket cap ÷ FCF | 52.08x | 40.60x |
Profitability & Efficiency
ADI delivers a 8.0% return on equity — every $100 of shareholder capital generates $8 in annual profit, vs $-1 for MCHP. ADI carries lower financial leverage with a 0.26x debt-to-equity ratio, signaling a more conservative balance sheet compared to MCHP's 0.80x. On the Piotroski fundamental quality scale (0–9), ADI scores 8/9 vs MCHP's 5/9, reflecting strong financial health.
| Metric | MCHPMicrochip Technol… | ADIAnalog Devices, I… |
|---|---|---|
| ROE (TTM)Return on equity | -1.5% | +8.0% |
| ROA (TTM)Return on assets | -0.7% | +5.6% |
| ROICReturn on invested capital | +1.8% | +5.4% |
| ROCEReturn on capital employed | +2.1% | +6.5% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 8 |
| Debt / EquityFinancial leverage | 0.80x | 0.26x |
| Net DebtTotal debt minus cash | $4.9B | $6.2B |
| Cash & Equiv.Liquid assets | $772M | $2.5B |
| Total DebtShort + long-term debt | $5.7B | $8.7B |
| Interest CoverageEBIT ÷ Interest expense | 0.78x | 10.80x |
Total Returns (with DRIP)
A $10,000 investment in ADI five years ago would be worth $23,455 today (with dividends reinvested), compared to $10,390 for MCHP. Over the past 12 months, ADI leads with a +56.4% total return vs MCHP's +29.9%. The 3-year compound annual growth rate (CAGR) favors ADI at 25.9% vs MCHP's -0.4% — a key indicator of consistent wealth creation.
| Metric | MCHPMicrochip Technol… | ADIAnalog Devices, I… |
|---|---|---|
| YTD ReturnYear-to-date | +15.5% | +30.0% |
| 1-Year ReturnPast 12 months | +29.9% | +56.4% |
| 3-Year ReturnCumulative with dividends | -1.3% | +99.5% |
| 5-Year ReturnCumulative with dividends | +3.9% | +134.6% |
| 10-Year ReturnCumulative with dividends | +285.6% | +621.4% |
| CAGR (3Y)Annualised 3-year return | -0.4% | +25.9% |
Risk & Volatility
ADI is the less volatile stock with a 1.55 beta — it tends to amplify market swings less than MCHP's 2.17 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. ADI currently trades 98.0% from its 52-week high vs MCHP's 89.6% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | MCHPMicrochip Technol… | ADIAnalog Devices, I… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.17x | 1.55x |
| 52-Week HighHighest price in past year | $83.35 | $363.20 |
| 52-Week LowLowest price in past year | $34.13 | $158.65 |
| % of 52W HighCurrent price vs 52-week peak | +89.6% | +98.0% |
| RSI (14)Momentum oscillator 0–100 | 47.1 | 71.0 |
| Avg Volume (50D)Average daily shares traded | 7.6M | 3.1M |
Analyst Outlook
Wall Street rates MCHP as "Buy" and ADI as "Buy". Consensus price targets imply 16.6% upside for MCHP (target: $87) vs 5.2% for ADI (target: $374). For income investors, MCHP offers the higher dividend yield at 2.43% vs ADI's 1.09%.
| Metric | MCHPMicrochip Technol… | ADIAnalog Devices, I… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $87.00 | $374.42 |
| # AnalystsCovering analysts | 46 | 54 |
| Dividend YieldAnnual dividend ÷ price | +2.4% | +1.1% |
| Dividend StreakConsecutive years of raises | 5 | 22 |
| Dividend / ShareAnnual DPS | $1.82 | $3.87 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.2% | +1.2% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 20 | Feb 26 | Change |
|---|---|---|---|
| Microchip Technolog… (MCHP) | 100 | 172.13 | +72.1% |
| Analog Devices, Inc. (ADI) | 100 | 290.56 | +190.6% |
Analog Devices, Inc. (ADI) returned +135% over 5 years vs Microchip Technolog… (MCHP)'s +4%. A $10,000 investment in ADI 5 years ago would be worth $23,455 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Microchip Technolog… (MCHP) | $2.2B | $4.4B | +102.5% |
| Analog Devices, Inc. (ADI) | $3.4B | $11.0B | +222.1% |
Microchip Technology Incorporated's revenue grew from $2.2B (2016) to $4.4B (2025) — a 8.2% CAGR. Analog Devices, Inc.'s revenue grew from $3.4B (2016) to $11.0B (2025) — a 13.9% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Microchip Technolog… (MCHP) | 14.9% | -0.0% | -100.1% |
| Analog Devices, Inc. (ADI) | 25.2% | 20.6% | -18.3% |
Microchip Technology Incorporated's net margin went from 15% (2016) to -0% (2025). Analog Devices, Inc.'s net margin went from 25% (2016) to 21% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Microchip Technolog… (MCHP) | 122.1 | 16.5 | -86.5% |
| Analog Devices, Inc. (ADI) | 38.9 | 59.5 | +53.0% |
Microchip Technology Incorporated has traded in a 17x–134x P/E range over 8 years; current trailing P/E is ~-9999x. Analog Devices, Inc. has traded in a 22x–65x P/E range over 9 years; current trailing P/E is ~78x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Microchip Technolog… (MCHP) | 0.75 | -0.01 | -100.7% |
| Analog Devices, Inc. (ADI) | 2.76 | 4.56 | +65.2% |
Microchip Technology Incorporated's EPS grew from $0.75 (2016) to $-0.01 (2025) — a NaN% CAGR. Analog Devices, Inc.'s EPS grew from $2.76 (2016) to $4.56 (2025) — a 6% CAGR.
Chart 6Free Cash Flow — 5 Years
Microchip Technology Incorporated generated $772M FCF in 2025 (-58% vs 2021). Analog Devices, Inc. generated $4B FCF in 2025 (+79% vs 2021).
MCHP vs ADI: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is MCHP or ADI a better buy right now?
Analog Devices, Inc. (ADI) offers the better valuation at 78.0x trailing P/E (31.5x forward), making it the more compelling value choice. Analysts rate Microchip Technology Incorporated (MCHP) a "Buy" — based on 46 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — MCHP or ADI?
On forward P/E, Analog Devices, Inc. is actually cheaper at 31.5x.
03Which is the better long-term investment — MCHP or ADI?
Over the past 5 years, Analog Devices, Inc. (ADI) delivered a total return of +134.6%, compared to +3.9% for Microchip Technology Incorporated (MCHP). A $10,000 investment in ADI five years ago would be worth approximately $23K today (assuming dividends reinvested). Over 10 years, the gap is even starker: ADI returned +621.4% versus MCHP's +285.6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — MCHP or ADI?
By beta (market sensitivity over 5 years), Analog Devices, Inc. (ADI) is the lower-risk stock at 1.55β versus Microchip Technology Incorporated's 2.17β — meaning MCHP is approximately 40% more volatile than ADI relative to the S&P 500. On balance sheet safety, Analog Devices, Inc. (ADI) carries a lower debt/equity ratio of 26% versus 80% for Microchip Technology Incorporated — giving it more financial flexibility in a downturn.
05Which has better profit margins — MCHP or ADI?
Analog Devices, Inc. (ADI) is the more profitable company, earning 20.6% net margin versus -0.0% for Microchip Technology Incorporated — meaning it keeps 20.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ADI leads at 26.6% versus 6.7% for MCHP. At the gross margin level — before operating expenses — ADI leads at 61.5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is MCHP or ADI more undervalued right now?
On forward earnings alone, Analog Devices, Inc. (ADI) trades at 31.5x forward P/E versus 47.6x for Microchip Technology Incorporated — 16.1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MCHP: 16.6% to $87.00.
07Which pays a better dividend — MCHP or ADI?
All stocks in this comparison pay dividends. Microchip Technology Incorporated (MCHP) offers the highest yield at 2.4%, versus 1.1% for Analog Devices, Inc. (ADI).
08Is MCHP or ADI better for a retirement portfolio?
For long-horizon retirement investors, Analog Devices, Inc. (ADI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (1.1% yield, +621.4% 10Y return). Microchip Technology Incorporated (MCHP) carries a higher beta of 2.17 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ADI: +621.4%, MCHP: +285.6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between MCHP and ADI?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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