Seek Returns logo

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

Updated

Here’s a clear look at ASML 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

ASML dwarfs MCHP in market cap, clocking in at 289.86 billion USD—about 9.10 times the 31.87 billion USD of its counterpart.

ASML at 1.22 and MCHP at 1.41 move in sync when it comes to market volatility.

Worth noting: ASML flies the ADR flag, tying it to a foreign outfit on U.S. soil, while MCHP sticks to plain-vanilla U.S. listing.

SymbolASMLMCHP
Company NameASML Holding N.V.Microchip Technology Incorporated
CountryNLUS
SectorTechnologyTechnology
IndustrySemiconductorsSemiconductors
CEOMr. Christophe D. FouquetMr. Stephen Sanghi
Price737.17 USD59.25 USD
Market Cap289.86 billion USD31.87 billion USD
Beta1.2211.407
ExchangeNASDAQNASDAQ
IPO DateMarch 15, 1995March 19, 1993
ADRYesNo

Performance Comparison

This chart compares the performance of ASML 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 ASML 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 with no net profit generated. Meanwhile, ASML at 29.41 has sustained positive earnings, offering a more stable earnings foundation.
  • MCHP has a negative Forward PEG of -221.72, suggesting analysts predict either a drop in earnings or no profits at all in the near future—a red flag for its growth trajectory. Meanwhile, ASML at 1.80 avoids such a pessimistic forecast.
SymbolASMLMCHP
Price-to-Earnings Ratio (P/E, TTM)29.41-11792.94
Forward PEG Ratio (TTM)1.80-221.72
Price-to-Sales Ratio (P/S, TTM)8.357.24
Price-to-Book Ratio (P/B, TTM)14.625.28
Price-to-Free Cash Flow Ratio (P/FCF, TTM)27.6334.11
EV-to-EBITDA (TTM)21.8544.38
EV-to-Sales (TTM)8.188.65
EV-to-Free Cash Flow (TTM)27.0540.74

Dividend Comparison

Both ASML at 0.98% and MCHP at 2.30% pay dividends, blending income with growth in their strategies. Yet MCHP’s 2.30% yield, 135% above ASML’s 0.98%, suggests a focus on generous payouts—possibly from stronger profits—while ASML leans toward reinvestment, perhaps due to tighter margins.

SymbolASMLMCHP
Dividend Yield (TTM)0.98%2.30%

Financial Strength Metrics Comparison

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

  • ASML posts an interest coverage of “--”, hinting at interest costs so low they’re negligible—often from scant debt or dirt-cheap rates—while MCHP at 1.59 handles interest with solid earnings.
SymbolASMLMCHP
Current Ratio (TTM)1.522.25
Quick Ratio (TTM)0.911.23
Debt-to-Equity Ratio (TTM)0.211.12
Debt-to-Assets Ratio (TTM)0.080.43
Interest Coverage Ratio (TTM)--1.59