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

Company Overview

MCHP’s market capitalization of 35.45 billion USD is significantly greater than ASTS’s 12.59 billion USD, highlighting its more substantial market valuation.

With betas of 2.02 for ASTS and 1.46 for MCHP, both stocks show similar sensitivity to overall market movements.

Performance Comparison

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

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

This section compares the market valuation of ASTS and MCHP. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.

• ASTS’s Price-to-Earnings (P/E) ratio of -26.36 and MCHP’s P/E ratio of -13082.70 both indicate negative earnings. For ASTS, this signifies current unprofitability, raising questions about its operational efficiency or market conditions. MCHP’s negative P/E also reflects a lack of current earnings, a key concern for its financial health and investor appeal.
• ASTS’s Forward PEG ratio of 12.91 is very high, suggesting its stock might be overvalued if its price has substantially outrun its future earnings growth forecast. MCHP’s Forward PEG ratio of -249.01 is negative, often an indicator of issues such as negative current earnings or anticipated earnings contraction, which calls its fundamental valuation into question.
• ASTS’s Price-to-Book (P/B) ratio of 11.21 is very high. This often indicates that the market values the company significantly above its net asset value, usually reflecting strong profitability, valuable intangible assets (like brand or patents), or high expectations for future growth.

Dividend Comparison

ASTS currently offers no dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while MCHP provides a 2.77% dividend yield, offering investors a component of income return.

Financial Strength Metrics Comparison

This section evaluates the financial strength of ASTS and MCHP. Noteworthy observations on their financial resilience, considered from an industry perspective, are detailed in the points that follow.

• ASTS’s Interest Coverage Ratio (ICR) of -52.83 is negative. This implies its operating earnings are insufficient to meet its interest expenses, a serious situation that threatens its financial stability and capacity to honor debt commitments.