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APP vs. MCHP: A Head-to-Head Stock Comparison

Updated

Here’s a clear look at APP and MCHP, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.

Company Overview

APP dominates in value with a market cap of 121.26 billion USD, eclipsing MCHP’s 31.87 billion USD by roughly 3.81×.

APP’s beta of 2.39 points to much larger expected swings compared to MCHP’s calmer 1.41, suggesting both higher upside and downside potential.

SymbolAPPMCHP
Company NameAppLovin CorporationMicrochip Technology Incorporated
CountryUSUS
SectorTechnologyTechnology
IndustrySoftware - ApplicationSemiconductors
CEOMr. Adam Arash ForoughiMr. Stephen Sanghi
Price358.35 USD59.25 USD
Market Cap121.26 billion USD31.87 billion USD
Beta2.391.41
ExchangeNASDAQNASDAQ
IPO DateApril 15, 2021March 19, 1993
ADRNoNo

Performance Comparison

This chart compares the performance of APP and MCHP over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Hover over the lines to see the investment’s value and total return (%) at specific dates.

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

The section examines key financial ratios to assess the valuation of APP and MCHP based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.

  • MCHP shows a negative P/E of -11792.94, highlighting a year of losses, whereas APP at 63.43 trades on solid profitability.
  • MCHP shows a negative forward PEG of -221.72, signaling expected earnings contraction, while APP at 2.43 maintains analysts’ projections for stable or improved profits.
SymbolAPPMCHP
Price-to-Earnings Ratio (P/E, TTM)63.43-11792.94
Forward PEG Ratio (TTM)2.43-221.72
Price-to-Sales Ratio (P/S, TTM)23.617.24
Price-to-Book Ratio (P/B, TTM)211.645.28
Price-to-Free Cash Flow Ratio (P/FCF, TTM)47.8734.11
EV-to-EBITDA (TTM)47.3044.38
EV-to-Sales (TTM)24.238.65
EV-to-Free Cash Flow (TTM)49.1240.74

Dividend Comparison

APP offers a 0% dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while MCHP provides a 2.30% dividend yield, giving investors a steady income stream.

SymbolAPPMCHP
Dividend Yield (TTM)0.00%2.30%

Financial Strength Metrics Comparison

This section dives into the financial resilience of APP and MCHP, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

  • APP is heavily leveraged (debt-to-equity ratio 6.45), which can boost returns but raises risk if borrowing costs climb, while MCHP at 1.12 keeps leverage at a more moderate level.
SymbolAPPMCHP
Current Ratio (TTM)1.682.25
Quick Ratio (TTM)1.681.23
Debt-to-Equity Ratio (TTM)6.451.12
Debt-to-Assets Ratio (TTM)0.650.43
Interest Coverage Ratio (TTM)7.411.59