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Stock Comparison

POWI vs MCHP

Revenue, margins, valuation, and 5-year total return — side by side.

Live fundamentals10-year financials5-year price chart
POWI
Power Integrations, Inc.

Semiconductors

TechnologyNASDAQ • US
Market Cap$4.00B
5Y Perf.+32.6%
MCHP
Microchip Technology Incorporated

Semiconductors

TechnologyNASDAQ • US
Market Cap$54.97B
5Y Perf.+111.6%

POWI vs MCHP — Key Financials

Market cap, revenue, margins, and valuation side-by-side.

Company Snapshot
POWI logoPOWI
MCHP logoMCHP
IndustrySemiconductorsSemiconductors
Market Cap$4.00B$54.97B
Revenue (TTM)$446M$4.37B
Net Income (TTM)$17M$-97M
Gross Margin53.9%51.6%
Operating Margin4.6%4.1%
Forward P/E55.5x64.8x
Total Debt$0.00$5.67B
Cash & Equiv.$59M$772M

POWI vs MCHPLong-Term Stock Performance

Price return indexed to 100 at period start. Dividends excluded.

POWI
MCHP
StockMay 20May 26Return
Power Integrations,… (POWI)100132.6+32.6%
Microchip Technolog… (MCHP)100211.6+111.6%

Price return only. Dividends and distributions are not included.

Quick Verdict: POWI vs MCHP

Each card shows where this stock fits in a portfolio — not just who wins on paper.

Bottom line: POWI leads in 4 of 7 categories, making it the strongest pick for growth and revenue expansion and valuation and capital efficiency. Microchip Technology Incorporated is the stronger pick specifically for capital preservation and lower volatility and dividend income and shareholder returns. As sector peers, any of these can serve as alternatives in the same allocation.
POWI
Power Integrations, Inc.
The Growth Play

POWI carries the broadest edge in this set and is the clearest fit for growth exposure.

  • Rev growth 5.9%, EPS growth -30.4%, 3Y rev CAGR -12.0%
  • 5.9% revenue growth vs MCHP's -42.3%
  • Lower P/E (55.5x vs 64.8x)
Best for: growth exposure
MCHP
Microchip Technology Incorporated
The Income Pick

MCHP is the clearest fit if your priority is income & stability and long-term compounding.

  • Dividend streak 5 yrs, beta 1.70, yield 1.8%
  • 373.8% 10Y total return vs POWI's 232.7%
  • Lower volatility, beta 1.70, Low D/E 80.0%, current ratio 2.59x
Best for: income & stability and long-term compounding
See the full category breakdown
CategoryWinnerWhy
GrowthPOWI logoPOWI5.9% revenue growth vs MCHP's -42.3%
ValuePOWI logoPOWILower P/E (55.5x vs 64.8x)
Quality / MarginsPOWI logoPOWI3.7% margin vs MCHP's -2.2%
Stability / SafetyMCHP logoMCHPBeta 1.70 vs POWI's 2.08
DividendsMCHP logoMCHP1.8% yield, 5-year raise streak, vs POWI's 1.2%
Momentum (1Y)MCHP logoMCHP+115.1% vs POWI's +44.4%
Efficiency (ROA)POWI logoPOWI2.1% ROA vs MCHP's -0.7%, ROIC 2.4% vs 1.8%

POWI vs MCHP — Revenue Breakdown by Segment

How each company's revenue is distributed across its business units

POWIPower Integrations, Inc.

Segment breakdown not available.

MCHPMicrochip Technology Incorporated
FY 2025
Semiconductor Products Member
97.0%$4.3B
Technology Licensing Member
3.0%$131M

POWI vs MCHP — Financial Metrics

Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.

BEST OVERALLPOWILAGGINGMCHP

Income & Cash Flow (Last 12 Months)

POWI leads this category, winning 4 of 6 comparable metrics.

MCHP is the larger business by revenue, generating $4.4B annually — 9.8x POWI's $446M. POWI is the more profitable business, keeping 3.7% 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.

MetricPOWI logoPOWIPower Integration…MCHP logoMCHPMicrochip Technol…
RevenueTrailing 12 months$446M$4.4B
EBITDAEarnings before interest/tax$41M$881M
Net IncomeAfter-tax profit$17M-$97M
Free Cash FlowCash after capex$85M$820M
Gross MarginGross profit ÷ Revenue+53.9%+51.6%
Operating MarginEBIT ÷ Revenue+4.6%+4.1%
Net MarginNet income ÷ Revenue+3.7%-2.2%
FCF MarginFCF ÷ Revenue+18.9%+18.8%
Rev. Growth (YoY)Latest quarter vs prior year+2.6%+15.6%
EPS Growth (YoY)Latest quarter vs prior year-60.0%+164.2%
POWI leads this category, winning 4 of 6 comparable metrics.

Valuation Metrics

POWI leads this category, winning 4 of 6 comparable metrics.

On an enterprise value basis, MCHP's 57.2x EV/EBITDA is more attractive than POWI's 79.7x.

MetricPOWI logoPOWIPower Integration…MCHP logoMCHPMicrochip Technol…
Market CapShares × price$4.0B$55.0B
Enterprise ValueMkt cap + debt − cash$3.9B$59.9B
Trailing P/EPrice ÷ TTM EPS184.18x-9999.00x
Forward P/EPrice ÷ next-FY EPS est.55.51x64.79x
PEG RatioP/E ÷ EPS growth rate
EV / EBITDAEnterprise value multiple79.69x57.21x
Price / SalesMarket cap ÷ Revenue9.02x12.49x
Price / BookPrice ÷ Book value/share6.01x7.71x
Price / FCFMarket cap ÷ FCF45.93x71.19x
POWI leads this category, winning 4 of 6 comparable metrics.

Profitability & Efficiency

POWI leads this category, winning 7 of 7 comparable metrics.

POWI delivers a 2.4% return on equity — every $100 of shareholder capital generates $2 in annual profit, vs $-1 for MCHP. On the Piotroski fundamental quality scale (0–9), POWI scores 6/9 vs MCHP's 5/9, reflecting solid financial health.

MetricPOWI logoPOWIPower Integration…MCHP logoMCHPMicrochip Technol…
ROE (TTM)Return on equity+2.4%-1.4%
ROA (TTM)Return on assets+2.1%-0.7%
ROICReturn on invested capital+2.4%+1.8%
ROCEReturn on capital employed+2.9%+2.1%
Piotroski ScoreFundamental quality 0–965
Debt / EquityFinancial leverage0.80x
Net DebtTotal debt minus cash-$59M$4.9B
Cash & Equiv.Liquid assets$59M$772M
Total DebtShort + long-term debt$0$5.7B
Interest CoverageEBIT ÷ Interest expense0.78x
POWI leads this category, winning 7 of 7 comparable metrics.

Total Returns (Dividends Reinvested)

MCHP leads this category, winning 5 of 6 comparable metrics.

A $10,000 investment in MCHP five years ago would be worth $14,566 today (with dividends reinvested), compared to $9,165 for POWI. Over the past 12 months, MCHP leads with a +115.1% total return vs POWI's +44.4%. The 3-year compound annual growth rate (CAGR) favors MCHP at 12.9% vs POWI's -2.2% — a key indicator of consistent wealth creation.

MetricPOWI logoPOWIPower Integration…MCHP logoMCHPMicrochip Technol…
YTD ReturnYear-to-date+93.2%+56.9%
1-Year ReturnPast 12 months+44.4%+115.1%
3-Year ReturnCumulative with dividends-6.3%+43.9%
5-Year ReturnCumulative with dividends-8.3%+45.7%
10-Year ReturnCumulative with dividends+232.7%+373.8%
CAGR (3Y)Annualised 3-year return-2.2%+12.9%
MCHP leads this category, winning 5 of 6 comparable metrics.

Risk & Volatility

MCHP leads this category, winning 2 of 2 comparable metrics.

MCHP is the less volatile stock with a 1.70 beta — it tends to amplify market swings less than POWI's 2.08 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. MCHP currently trades 98.5% from its 52-week high vs POWI's 91.0% drawdown — a narrower gap to the peak suggests stronger recent price momentum.

MetricPOWI logoPOWIPower Integration…MCHP logoMCHPMicrochip Technol…
Beta (5Y)Sensitivity to S&P 5002.08x1.70x
52-Week HighHighest price in past year$78.94$103.17
52-Week LowLowest price in past year$30.86$46.92
% of 52W HighCurrent price vs 52-week peak+91.0%+98.5%
RSI (14)Momentum oscillator 0–10076.182.5
Avg Volume (50D)Average daily shares traded967K9.0M
MCHP leads this category, winning 2 of 2 comparable metrics.

Analyst Outlook

Evenly matched — POWI and MCHP each lead in 1 of 2 comparable metrics.

Wall Street rates POWI as "Buy" and MCHP as "Buy". Consensus price targets imply 10.0% upside for POWI (target: $79) vs -14.4% for MCHP (target: $87). For income investors, MCHP offers the higher dividend yield at 1.79% vs POWI's 1.17%.

MetricPOWI logoPOWIPower Integration…MCHP logoMCHPMicrochip Technol…
Analyst RatingConsensus buy/hold/sellBuyBuy
Price TargetConsensus 12-month target$79.00$87.00
# AnalystsCovering analysts1646
Dividend YieldAnnual dividend ÷ price+1.2%+1.8%
Dividend StreakConsecutive years of raises185
Dividend / ShareAnnual DPS$0.84$1.82
Buyback YieldShare repurchases ÷ mkt cap+2.5%+0.2%
Evenly matched — POWI and MCHP each lead in 1 of 2 comparable metrics.
Key Takeaway

POWI leads in 3 of 6 categories (Income & Cash Flow, Valuation Metrics). MCHP leads in 2 (Total Returns, Risk & Volatility). 1 tied.

Best OverallPower Integrations, Inc. (POWI)Leads 3 of 6 categories
Loading custom metrics...

POWI vs MCHP: Frequently Asked Questions

10 questions · data-driven answers · updated daily

01

Is POWI or MCHP a better buy right now?

For growth investors, Power Integrations, Inc.

(POWI) is the stronger pick with 5. 9% revenue growth year-over-year, versus -42. 3% for Microchip Technology Incorporated (MCHP). Power Integrations, Inc. (POWI) offers the better valuation at 184. 2x trailing P/E (55. 5x forward), making it the more compelling value choice. Analysts rate Power Integrations, Inc. (POWI) a "Buy" — based on 16 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.

02

Which has the better valuation — POWI or MCHP?

On forward P/E, Power Integrations, Inc.

is actually cheaper at 55. 5x.

03

Which is the better long-term investment — POWI or MCHP?

Over the past 5 years, Microchip Technology Incorporated (MCHP) delivered a total return of +45.

7%, compared to -8. 3% for Power Integrations, Inc. (POWI). Over 10 years, the gap is even starker: MCHP returned +373. 8% versus POWI's +232. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

04

Which is safer — POWI or MCHP?

By beta (market sensitivity over 5 years), Microchip Technology Incorporated (MCHP) is the lower-risk stock at 1.

70β versus Power Integrations, Inc. 's 2. 08β — meaning POWI is approximately 23% more volatile than MCHP relative to the S&P 500.

05

Which is growing faster — POWI or MCHP?

By revenue growth (latest reported year), Power Integrations, Inc.

(POWI) is pulling ahead at 5. 9% versus -42. 3% for Microchip Technology Incorporated (MCHP). On earnings-per-share growth, the picture is similar: Power Integrations, Inc. grew EPS -30. 4% year-over-year, compared to -100. 1% for Microchip Technology Incorporated. Over a 3-year CAGR, POWI leads at -12. 0% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

06

Which has better profit margins — POWI or MCHP?

Power Integrations, Inc.

(POWI) is the more profitable company, earning 5. 0% net margin versus -0. 0% for Microchip Technology Incorporated — meaning it keeps 5. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MCHP leads at 6. 7% versus 4. 8% for POWI. 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.

07

Is POWI or MCHP more undervalued right now?

On forward earnings alone, Power Integrations, Inc.

(POWI) trades at 55. 5x forward P/E versus 64. 8x for Microchip Technology Incorporated — 9. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for POWI: 10. 0% to $79. 00.

08

Which pays a better dividend — POWI or MCHP?

All stocks in this comparison pay dividends.

Microchip Technology Incorporated (MCHP) offers the highest yield at 1. 8%, versus 1. 2% for Power Integrations, Inc. (POWI).

09

Is POWI or MCHP better for a retirement portfolio?

For long-horizon retirement investors, Microchip Technology Incorporated (MCHP) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (1.

8% yield, +373. 8% 10Y return). Power Integrations, Inc. (POWI) carries a higher beta of 2. 08 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (MCHP: +373. 8%, POWI: +232. 7%), 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.

10

What are the main differences between POWI and MCHP?

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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