Comprehensive Stock Comparison
Compare Microchip Technology Incorporated (MCHP) vs Broadcom Inc. (AVGO) 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 | AVGO | 23.9% revenue growth vs MCHP's -42.3% |
| Value | AVGO | Lower P/E (31.1x vs 47.6x) |
| Quality / Margins | AVGO | 36.2% net margin vs MCHP's -2.2% |
| Stability / Safety | AVGO | Beta 1.75 vs MCHP's 2.17 |
| Dividends | MCHP | 2.4% yield, 5-year raise streak, vs AVGO's 0.7% |
| Momentum (1Y) | AVGO | +61.4% vs MCHP's +29.9% |
| Efficiency (ROA) | AVGO | 13.5% ROA vs MCHP's -0.7%, ROIC 14.9% 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.
Broadcom is a semiconductor and infrastructure software company that designs and supplies critical components for data centers, networking, and connectivity. It generates revenue primarily from semiconductor sales (~70%) and infrastructure software licensing (~30%), with key segments including wired infrastructure, wireless communications, and enterprise storage. The company's moat lies in its deep engineering expertise, extensive patent portfolio, and entrenched positions in mission-critical infrastructure where customers face high switching costs.
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
AVGO leads in 3 of 6 categories (Financial Metrics, Profitability & Efficiency). MCHP leads in 1 (Valuation Metrics). 2 tied.
Financial Metrics (TTM)
AVGO is the larger business by revenue, generating $63.9B annually — 14.6x MCHP's $4.4B. AVGO is the more profitable business, keeping 36.2% of every revenue dollar as net income compared to MCHP's -2.2%. On growth, AVGO holds the edge at +22.0% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | MCHPMicrochip Technol… | AVGOBroadcom Inc. |
|---|---|---|
| RevenueTrailing 12 months | $4.4B | $63.9B |
| EBITDAEarnings before interest/tax | $881M | $34.2B |
| Net IncomeAfter-tax profit | -$97M | $23.1B |
| Free Cash FlowCash after capex | $820M | $26.9B |
| Gross MarginGross profit ÷ Revenue | +51.6% | +67.8% |
| Operating MarginEBIT ÷ Revenue | +4.1% | +39.9% |
| Net MarginNet income ÷ Revenue | -2.2% | +36.2% |
| FCF MarginFCF ÷ Revenue | +18.8% | +42.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | +15.6% | +22.0% |
| EPS Growth (YoY)Latest quarter vs prior year | +160.2% | +3.1% |
Valuation Metrics
On an enterprise value basis, MCHP's 43.1x EV/EBITDA is more attractive than AVGO's 44.1x.
| Metric | MCHPMicrochip Technol… | AVGOBroadcom Inc. |
|---|---|---|
| Market CapShares × price | $40.2B | $1.52T |
| Enterprise ValueMkt cap + debt − cash | $45.1B | $1.56T |
| Trailing P/EPrice ÷ TTM EPS | -9999.00x | 66.99x |
| Forward P/EPrice ÷ next-FY EPS est. | 47.63x | 31.10x |
| PEG RatioP/E ÷ EPS growth rate | — | 4.80x |
| EV / EBITDAEnterprise value multiple | 43.10x | 44.06x |
| Price / SalesMarket cap ÷ Revenue | 9.14x | 23.71x |
| Price / BookPrice ÷ Book value/share | 5.67x | 19.08x |
| Price / FCFMarket cap ÷ FCF | 52.08x | 56.29x |
Profitability & Efficiency
AVGO delivers a 28.4% return on equity — every $100 of shareholder capital generates $28 in annual profit, vs $-1 for MCHP. MCHP carries lower financial leverage with a 0.80x debt-to-equity ratio, signaling a more conservative balance sheet compared to AVGO's 0.80x. On the Piotroski fundamental quality scale (0–9), MCHP scores 5/9 vs AVGO's 4/9, reflecting solid financial health.
| Metric | MCHPMicrochip Technol… | AVGOBroadcom Inc. |
|---|---|---|
| ROE (TTM)Return on equity | -1.5% | +28.4% |
| ROA (TTM)Return on assets | -0.7% | +13.5% |
| ROICReturn on invested capital | +1.8% | +14.9% |
| ROCEReturn on capital employed | +2.1% | +16.9% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 4 |
| Debt / EquityFinancial leverage | 0.80x | 0.80x |
| Net DebtTotal debt minus cash | $4.9B | $49.0B |
| Cash & Equiv.Liquid assets | $772M | $16.2B |
| Total DebtShort + long-term debt | $5.7B | $65.1B |
| Interest CoverageEBIT ÷ Interest expense | 0.78x | 8.09x |
Total Returns (with DRIP)
A $10,000 investment in AVGO five years ago would be worth $67,244 today (with dividends reinvested), compared to $10,390 for MCHP. Over the past 12 months, AVGO leads with a +61.4% total return vs MCHP's +29.9%. The 3-year compound annual growth rate (CAGR) favors AVGO at 76.4% vs MCHP's -0.4% — a key indicator of consistent wealth creation.
| Metric | MCHPMicrochip Technol… | AVGOBroadcom Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +15.5% | -8.1% |
| 1-Year ReturnPast 12 months | +29.9% | +61.4% |
| 3-Year ReturnCumulative with dividends | -1.3% | +448.6% |
| 5-Year ReturnCumulative with dividends | +3.9% | +572.4% |
| 10-Year ReturnCumulative with dividends | +285.6% | +2389.2% |
| CAGR (3Y)Annualised 3-year return | -0.4% | +76.4% |
Risk & Volatility
AVGO is the less volatile stock with a 1.75 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. MCHP currently trades 89.6% from its 52-week high vs AVGO's 77.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | MCHPMicrochip Technol… | AVGOBroadcom Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.17x | 1.75x |
| 52-Week HighHighest price in past year | $83.35 | $414.61 |
| 52-Week LowLowest price in past year | $34.13 | $138.10 |
| % of 52W HighCurrent price vs 52-week peak | +89.6% | +77.1% |
| RSI (14)Momentum oscillator 0–100 | 47.1 | 44.2 |
| Avg Volume (50D)Average daily shares traded | 7.6M | 21.0M |
Analyst Outlook
Wall Street rates MCHP as "Buy" and AVGO as "Buy". Consensus price targets imply 38.9% upside for AVGO (target: $444) vs 16.6% for MCHP (target: $87). For income investors, MCHP offers the higher dividend yield at 2.43% vs AVGO's 0.72%.
| Metric | MCHPMicrochip Technol… | AVGOBroadcom Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $87.00 | $443.72 |
| # AnalystsCovering analysts | 46 | 57 |
| Dividend YieldAnnual dividend ÷ price | +2.4% | +0.7% |
| Dividend StreakConsecutive years of raises | 5 | 15 |
| Dividend / ShareAnnual DPS | $1.82 | $2.30 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.2% | +0.4% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Microchip Technolog… (MCHP) | 100 | 164 | +64.0% |
| Broadcom Inc. (AVGO) | 100 | 1,161.79 | +1061.8% |
Broadcom Inc. (AVGO) returned +572% over 5 years vs Microchip Technolog… (MCHP)'s +4%. A $10,000 investment in AVGO 5 years ago would be worth $67,244 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Microchip Technolog… (MCHP) | $2.2B | $4.4B | +102.5% |
| Broadcom Inc. (AVGO) | $13.2B | $63.9B | +382.5% |
Microchip Technology Incorporated's revenue grew from $2.2B (2016) to $4.4B (2025) — a 8.2% CAGR. Broadcom Inc.'s revenue grew from $13.2B (2016) to $63.9B (2025) — a 19.1% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Microchip Technolog… (MCHP) | 14.9% | -0.0% | -100.1% |
| Broadcom Inc. (AVGO) | -13.1% | 36.2% | +375.6% |
Microchip Technology Incorporated's net margin went from 15% (2016) to -0% (2025). Broadcom Inc.'s net margin went from -13% (2016) to 36% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Microchip Technolog… (MCHP) | 122.1 | 16.5 | -86.5% |
| Broadcom Inc. (AVGO) | 61.2 | 72.6 | +18.6% |
Microchip Technology Incorporated has traded in a 17x–134x P/E range over 8 years; current trailing P/E is ~-9999x. Broadcom Inc. has traded in a 9x–189x P/E range over 9 years; current trailing P/E is ~67x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Microchip Technolog… (MCHP) | 0.75 | -0.01 | -100.7% |
| Broadcom Inc. (AVGO) | -0.44 | 4.77 | +1184.1% |
Microchip Technology Incorporated's EPS grew from $0.75 (2016) to $-0.01 (2025) — a NaN% CAGR. Broadcom Inc.'s EPS grew from $-0.44 (2016) to $4.77 (2025).
Chart 6Free Cash Flow — 5 Years
Microchip Technology Incorporated generated $772M FCF in 2025 (-58% vs 2021). Broadcom Inc. generated $27B FCF in 2025 (+102% vs 2021).
MCHP vs AVGO: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is MCHP or AVGO a better buy right now?
Broadcom Inc. (AVGO) offers the better valuation at 67.0x trailing P/E (31.1x 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 AVGO?
On forward P/E, Broadcom Inc. is actually cheaper at 31.1x.
03Which is the better long-term investment — MCHP or AVGO?
Over the past 5 years, Broadcom Inc. (AVGO) delivered a total return of +572.4%, compared to +3.9% for Microchip Technology Incorporated (MCHP). A $10,000 investment in AVGO five years ago would be worth approximately $67K today (assuming dividends reinvested). Over 10 years, the gap is even starker: AVGO returned +23.9% 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 AVGO?
By beta (market sensitivity over 5 years), Broadcom Inc. (AVGO) is the lower-risk stock at 1.75β versus Microchip Technology Incorporated's 2.17β — meaning MCHP is approximately 23% more volatile than AVGO relative to the S&P 500. On balance sheet safety, Microchip Technology Incorporated (MCHP) carries a lower debt/equity ratio of 80% versus 80% for Broadcom Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — MCHP or AVGO?
Broadcom Inc. (AVGO) is the more profitable company, earning 36.2% net margin versus -0.0% for Microchip Technology Incorporated — meaning it keeps 36.2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AVGO leads at 39.9% versus 6.7% for MCHP. At the gross margin level — before operating expenses — AVGO leads at 67.8%, 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 AVGO more undervalued right now?
On forward earnings alone, Broadcom Inc. (AVGO) trades at 31.1x forward P/E versus 47.6x for Microchip Technology Incorporated — 16.5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AVGO: 38.9% to $443.72.
07Which pays a better dividend — MCHP or AVGO?
All stocks in this comparison pay dividends. Microchip Technology Incorporated (MCHP) offers the highest yield at 2.4%, versus 0.7% for Broadcom Inc. (AVGO).
08Is MCHP or AVGO better for a retirement portfolio?
For long-horizon retirement investors, Broadcom Inc. (AVGO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (0.7% yield). 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 (AVGO: +23.9%, 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 AVGO?
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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