Reviewing Microchip Technology (NASDAQ:MCHP) and Melexis (OTCMKTS:MLXSF)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Melexis	N/A	N/A	N/A
Microchip Technology	20.80%	27.82%	11.85%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Melexis	0	0	0	0	N/A
Microchip Technology	0	4	15	0	2.79

Microchip Technology has a consensus target price of $99.95, indicating a potential upside of 21.84%. Given Microchip Technology’s higher possible upside, analysts plainly believe Microchip Technology is more favorable than Melexis.

Valuation & Earnings

This table compares Melexis and Microchip Technology’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Melexis	N/A	N/A	N/A	N/A	N/A
Microchip Technology	$6.59 billion	6.68	$1.91 billion	$3.47	23.64

Microchip Technology has higher revenue and earnings than Melexis.

Insider and Institutional Ownership

21.1% of Melexis shares are owned by institutional investors. Comparatively, 91.5% of Microchip Technology shares are owned by institutional investors. 2.1% of Microchip Technology shares are owned by 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.

Summary

Microchip Technology beats Melexis on 8 of the 8 factors compared between the two stocks.

About Melexis

Melexis NV designs, develops, tests, and markets advanced integrated semiconductor devices primarily for the automotive industry in Europe, the Middle-East, Africa, the Asia Pacific, and North and Latin America. The company provides magnetic position, current, latch and switch, inductive position, speed, pressure, tire monitoring, temperature, and optical sensors ICs and time-of-flight; embedded motor, smart, fan and pump, smart LED, and pre-driver ICs; embedded lighting; and LIN transceiver, CAN transceiver, and RFID transceivers. The company was founded in 1988 and is headquartered in Ieper, Belgium. Melexis NV is a subsidiary of Xtrion N.V.

About Microchip Technology

Microchip Technology Incorporated engages in the development, manufacture, and sale of smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications. It also provides analog, interface, mixed signal, and timing products comprising power management, linear, mixed-signal, high-voltage, thermal management, discrete diodes, and metal oxide semiconductor field effect transistors (MOSFETS), radio frequency (RF), drivers, safety, security, timing, USB, Ethernet, wireless, and other interface products; field-programmable gate array (FPGA) products; and application development tools that enable system designers to program microcontroller, FPGA, and microprocessor products for specific applications. In addition, the company offers serial electrically erasable programmable read-only memory, serial flash memories, parallel flash memories, serial static random access memories, and serial electrically erasable random access memories for the production of very small footprint devices; and licenses its SuperFlash embedded flash and non-volatile memory technologies to foundries, integrated device manufacturers, and design partners for use in the manufacture of microcontroller products, gate array, RF, analog, and neuromorphic compute products that require embedded non-volatile memory, as well as provides engineering services. Further, it offers wafer foundry and assembly, and test subcontracting manufacturing services; and timing systems products, application specific integrated circuits, and aerospace products. The company was incorporated in 1989 and is headquartered in Chandler, Arizona.