Comprehensive Stock Comparison
Compare Microchip Technology Incorporated (MCHP) vs QUALCOMM Incorporated (QCOM) 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 | QCOM | 13.7% revenue growth vs MCHP's -42.3% |
| Value | QCOM | Lower P/E (12.7x vs 47.6x) |
| Quality / Margins | QCOM | 12.0% net margin vs MCHP's -2.2% |
| Stability / Safety | QCOM | Beta 1.48 vs MCHP's 2.17, lower leverage |
| Dividends | MCHP | 2.4% yield, 5-year raise streak, vs QCOM's 2.4% |
| Momentum (1Y) | MCHP | +29.9% vs QCOM's -7.2% |
| Efficiency (ROA) | QCOM | 10.1% ROA vs MCHP's -0.7%, ROIC 29.1% 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.
Qualcomm is a semiconductor and wireless technology company that designs and licenses foundational technologies for mobile communications. It generates revenue primarily through selling smartphone chipsets (~75% of revenue) and licensing its extensive patent portfolio for wireless standards like 5G (~25% of revenue). The company's key advantage is its massive portfolio of essential wireless patents—particularly in CDMA and 5G—which creates a licensing moat that generates high-margin recurring revenue.
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
QCOM leads in 3 of 6 categories — strongest in Financial Metrics and Valuation Metrics. 3 categories are tied.
Financial Metrics (TTM)
QCOM is the larger business by revenue, generating $44.9B annually — 10.3x MCHP's $4.4B. QCOM is the more profitable business, keeping 12.0% of every revenue dollar as net income compared to MCHP's -2.2%. On growth, MCHP holds the edge at +15.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | MCHPMicrochip Technol… | QCOMQUALCOMM Incorpor… |
|---|---|---|
| RevenueTrailing 12 months | $4.4B | $44.9B |
| EBITDAEarnings before interest/tax | $881M | $13.3B |
| Net IncomeAfter-tax profit | -$97M | $5.4B |
| Free Cash FlowCash after capex | $820M | $12.9B |
| Gross MarginGross profit ÷ Revenue | +51.6% | +55.1% |
| Operating MarginEBIT ÷ Revenue | +4.1% | +27.1% |
| Net MarginNet income ÷ Revenue | -2.2% | +12.0% |
| FCF MarginFCF ÷ Revenue | +18.8% | +28.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +15.6% | +5.0% |
| EPS Growth (YoY)Latest quarter vs prior year | +160.2% | -1.8% |
Valuation Metrics
On an enterprise value basis, QCOM's 11.6x EV/EBITDA is more attractive than MCHP's 43.1x.
| Metric | MCHPMicrochip Technol… | QCOMQUALCOMM Incorpor… |
|---|---|---|
| Market CapShares × price | $40.2B | $152.9B |
| Enterprise ValueMkt cap + debt − cash | $45.1B | $161.4B |
| Trailing P/EPrice ÷ TTM EPS | -9999.00x | 28.42x |
| Forward P/EPrice ÷ next-FY EPS est. | 47.63x | 12.74x |
| PEG RatioP/E ÷ EPS growth rate | — | 13.66x |
| EV / EBITDAEnterprise value multiple | 43.10x | 11.57x |
| Price / SalesMarket cap ÷ Revenue | 9.14x | 3.45x |
| Price / BookPrice ÷ Book value/share | 5.67x | 7.42x |
| Price / FCFMarket cap ÷ FCF | 52.08x | 11.93x |
Profitability & Efficiency
QCOM delivers a 23.3% return on equity — every $100 of shareholder capital generates $23 in annual profit, vs $-1 for MCHP. QCOM carries lower financial leverage with a 0.77x debt-to-equity ratio, signaling a more conservative balance sheet compared to MCHP's 0.80x. On the Piotroski fundamental quality scale (0–9), QCOM scores 6/9 vs MCHP's 5/9, reflecting solid financial health.
| Metric | MCHPMicrochip Technol… | QCOMQUALCOMM Incorpor… |
|---|---|---|
| ROE (TTM)Return on equity | -1.5% | +23.3% |
| ROA (TTM)Return on assets | -0.7% | +10.1% |
| ROICReturn on invested capital | +1.8% | +29.1% |
| ROCEReturn on capital employed | +2.1% | +28.9% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 6 |
| Debt / EquityFinancial leverage | 0.80x | 0.77x |
| Net DebtTotal debt minus cash | $4.9B | $8.5B |
| Cash & Equiv.Liquid assets | $772M | $7.8B |
| Total DebtShort + long-term debt | $5.7B | $16.4B |
| Interest CoverageEBIT ÷ Interest expense | 0.78x | 18.76x |
Total Returns (with DRIP)
A $10,000 investment in QCOM five years ago would be worth $11,332 today (with dividends reinvested), compared to $10,390 for MCHP. Over the past 12 months, MCHP leads with a +29.9% total return vs QCOM's -7.2%. The 3-year compound annual growth rate (CAGR) favors QCOM at 7.2% vs MCHP's -0.4% — a key indicator of consistent wealth creation.
| Metric | MCHPMicrochip Technol… | QCOMQUALCOMM Incorpor… |
|---|---|---|
| YTD ReturnYear-to-date | +15.5% | -17.7% |
| 1-Year ReturnPast 12 months | +29.9% | -7.2% |
| 3-Year ReturnCumulative with dividends | -1.3% | +23.4% |
| 5-Year ReturnCumulative with dividends | +3.9% | +13.3% |
| 10-Year ReturnCumulative with dividends | +285.6% | +234.4% |
| CAGR (3Y)Annualised 3-year return | -0.4% | +7.2% |
Risk & Volatility
QCOM is the less volatile stock with a 1.48 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 QCOM's 69.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | MCHPMicrochip Technol… | QCOMQUALCOMM Incorpor… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.17x | 1.48x |
| 52-Week HighHighest price in past year | $83.35 | $205.95 |
| 52-Week LowLowest price in past year | $34.13 | $120.80 |
| % of 52W HighCurrent price vs 52-week peak | +89.6% | +69.1% |
| RSI (14)Momentum oscillator 0–100 | 47.1 | 45.9 |
| Avg Volume (50D)Average daily shares traded | 7.6M | 8.1M |
Analyst Outlook
Wall Street rates MCHP as "Buy" and QCOM as "Buy". Consensus price targets imply 16.6% upside for MCHP (target: $87) vs 13.4% for QCOM (target: $162). For income investors, MCHP offers the higher dividend yield at 2.43% vs QCOM's 2.42%.
| Metric | MCHPMicrochip Technol… | QCOMQUALCOMM Incorpor… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $87.00 | $161.50 |
| # AnalystsCovering analysts | 46 | 67 |
| Dividend YieldAnnual dividend ÷ price | +2.4% | +2.4% |
| Dividend StreakConsecutive years of raises | 5 | 23 |
| Dividend / ShareAnnual DPS | $1.82 | $3.44 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.2% | +5.7% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Microchip Technolog… (MCHP) | 100 | 164 | +64.0% |
| QUALCOMM Incorporat… (QCOM) | 100 | 189.45 | +89.4% |
QUALCOMM Incorporat… (QCOM) returned +13% over 5 years vs Microchip Technolog… (MCHP)'s +4%. A $10,000 investment in QCOM 5 years ago would be worth $11,332 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Microchip Technolog… (MCHP) | $2.2B | $4.4B | +102.5% |
| QUALCOMM Incorporat… (QCOM) | $23.6B | $44.3B | +88.0% |
Microchip Technology Incorporated's revenue grew from $2.2B (2016) to $4.4B (2025) — a 8.2% CAGR. QUALCOMM Incorporated's revenue grew from $23.6B (2016) to $44.3B (2025) — a 7.3% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Microchip Technolog… (MCHP) | 14.9% | -0.0% | -100.1% |
| QUALCOMM Incorporat… (QCOM) | 24.2% | 12.5% | -48.3% |
Microchip Technology Incorporated's net margin went from 15% (2016) to -0% (2025). QUALCOMM Incorporated's net margin went from 24% (2016) to 13% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Microchip Technolog… (MCHP) | 122.1 | 16.5 | -86.5% |
| QUALCOMM Incorporat… (QCOM) | 39 | 34.1 | -12.6% |
Microchip Technology Incorporated has traded in a 17x–134x P/E range over 8 years; current trailing P/E is ~-9999x. QUALCOMM Incorporated has traded in a 10x–39x P/E range over 8 years; current trailing P/E is ~28x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Microchip Technolog… (MCHP) | 0.75 | -0.01 | -100.7% |
| QUALCOMM Incorporat… (QCOM) | 3.81 | 5.01 | +31.5% |
Microchip Technology Incorporated's EPS grew from $0.75 (2016) to $-0.01 (2025) — a NaN% CAGR. QUALCOMM Incorporated's EPS grew from $3.81 (2016) to $5.01 (2025) — a 3% CAGR.
Chart 6Free Cash Flow — 5 Years
Microchip Technology Incorporated generated $772M FCF in 2025 (-58% vs 2021). QUALCOMM Incorporated generated $13B FCF in 2025 (+48% vs 2021).
MCHP vs QCOM: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is MCHP or QCOM a better buy right now?
QUALCOMM Incorporated (QCOM) offers the better valuation at 28.4x trailing P/E (12.7x 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 QCOM?
On forward P/E, QUALCOMM Incorporated is actually cheaper at 12.7x.
03Which is the better long-term investment — MCHP or QCOM?
Over the past 5 years, QUALCOMM Incorporated (QCOM) delivered a total return of +13.3%, compared to +3.9% for Microchip Technology Incorporated (MCHP). A $10,000 investment in QCOM five years ago would be worth approximately $11K today (assuming dividends reinvested). Over 10 years, the gap is even starker: MCHP returned +285.6% versus QCOM's +234.4%. 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 QCOM?
By beta (market sensitivity over 5 years), QUALCOMM Incorporated (QCOM) is the lower-risk stock at 1.48β versus Microchip Technology Incorporated's 2.17β — meaning MCHP is approximately 46% more volatile than QCOM relative to the S&P 500. On balance sheet safety, QUALCOMM Incorporated (QCOM) carries a lower debt/equity ratio of 77% versus 80% for Microchip Technology Incorporated — giving it more financial flexibility in a downturn.
05Which has better profit margins — MCHP or QCOM?
QUALCOMM Incorporated (QCOM) is the more profitable company, earning 12.5% net margin versus -0.0% for Microchip Technology Incorporated — meaning it keeps 12.5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: QCOM leads at 27.9% versus 6.7% for MCHP. At the gross margin level — before operating expenses — MCHP leads at 56.1%, 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 QCOM more undervalued right now?
On forward earnings alone, QUALCOMM Incorporated (QCOM) trades at 12.7x forward P/E versus 47.6x for Microchip Technology Incorporated — 34.9x 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 QCOM?
All stocks in this comparison pay dividends. Microchip Technology Incorporated (MCHP) offers the highest yield at 2.4%, versus 2.4% for QUALCOMM Incorporated (QCOM).
08Is MCHP or QCOM better for a retirement portfolio?
For long-horizon retirement investors, QUALCOMM Incorporated (QCOM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (2.4% yield, +234.4% 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 (QCOM: +234.4%, 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 QCOM?
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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