CTSH vs. MCHP: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CTSH and MCHP, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | CTSH | MCHP |
|---|---|---|
| Company Name | Cognizant Technology Solutions Corporation | Microchip Technology Incorporated |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | IT Services | Semiconductors & Semiconductor Equipment |
| Market Capitalization | 35.54 billion USD | 28.36 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | June 19, 1998 | March 19, 1993 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of CTSH and MCHP by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | CTSH | MCHP |
|---|---|---|
| 5-Day Price Return | -0.36% | -5.50% |
| 13-Week Price Return | 3.74% | -21.14% |
| 26-Week Price Return | -10.64% | -14.76% |
| 52-Week Price Return | -11.78% | -21.19% |
| Month-to-Date Return | -0.36% | -17.17% |
| Year-to-Date Return | -5.57% | -9.85% |
| 10-Day Avg. Volume | 4.85M | 9.84M |
| 3-Month Avg. Volume | 4.31M | 8.17M |
| 3-Month Volatility | 24.33% | 37.19% |
| Beta | 0.98 | 1.51 |
Profitability
Return on Equity (TTM)
CTSH
14.31%
IT Services Industry
- Max
- 37.08%
- Q3
- 19.28%
- Median
- 14.70%
- Q1
- 6.70%
- Min
- -8.16%
CTSH’s Return on Equity of 14.31% is on par with the norm for the IT Services industry, indicating its profitability relative to shareholder equity is typical for the sector.
MCHP
-2.78%
Semiconductors & Semiconductor Equipment Industry
- Max
- 49.05%
- Q3
- 22.19%
- Median
- 7.96%
- Q1
- 0.99%
- Min
- -15.65%
MCHP has a negative Return on Equity of -2.78%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
Net Profit Margin (TTM)
CTSH
10.20%
IT Services Industry
- Max
- 17.01%
- Q3
- 11.02%
- Median
- 6.91%
- Q1
- 3.07%
- Min
- -5.13%
CTSH’s Net Profit Margin of 10.20% is aligned with the median group of its peers in the IT Services industry. This indicates its ability to convert revenue into profit is typical for the sector.
MCHP
-4.39%
Semiconductors & Semiconductor Equipment Industry
- Max
- 52.41%
- Q3
- 24.47%
- Median
- 11.88%
- Q1
- 0.60%
- Min
- -25.46%
MCHP has a negative Net Profit Margin of -4.39%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
Operating Profit Margin (TTM)
CTSH
15.76%
IT Services Industry
- Max
- 23.01%
- Q3
- 15.32%
- Median
- 9.57%
- Q1
- 4.91%
- Min
- -9.58%
An Operating Profit Margin of 15.76% places CTSH in the upper quartile for the IT Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
MCHP
1.18%
Semiconductors & Semiconductor Equipment Industry
- Max
- 58.09%
- Q3
- 27.76%
- Median
- 12.14%
- Q1
- 3.29%
- Min
- -32.60%
MCHP’s Operating Profit Margin of 1.18% is in the lower quartile for the Semiconductors & Semiconductor Equipment industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | CTSH | MCHP |
|---|---|---|
| Return on Equity (TTM) | 14.31% | -2.78% |
| Return on Assets (TTM) | 10.61% | -1.22% |
| Net Profit Margin (TTM) | 10.20% | -4.39% |
| Operating Profit Margin (TTM) | 15.76% | 1.18% |
| Gross Profit Margin (TTM) | 34.06% | 54.06% |
Financial Strength
Current Ratio (MRQ)
CTSH
2.36
IT Services Industry
- Max
- 3.02
- Q3
- 1.91
- Median
- 1.36
- Q1
- 1.02
- Min
- 0.49
CTSH’s Current Ratio of 2.36 is in the upper quartile for the IT Services industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
MCHP
2.25
Semiconductors & Semiconductor Equipment Industry
- Max
- 6.57
- Q3
- 4.28
- Median
- 2.86
- Q1
- 2.22
- Min
- 1.02
MCHP’s Current Ratio of 2.25 aligns with the median group of the Semiconductors & Semiconductor Equipment industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
CTSH
0.04
IT Services Industry
- Max
- 2.55
- Q3
- 1.30
- Median
- 0.55
- Q1
- 0.14
- Min
- 0.00
Falling into the lower quartile for the IT Services industry, CTSH’s Debt-to-Equity Ratio of 0.04 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
MCHP
0.80
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.18
- Q3
- 0.48
- Median
- 0.24
- Q1
- 0.01
- Min
- 0.00
MCHP’s leverage is in the upper quartile of the Semiconductors & Semiconductor Equipment industry, with a Debt-to-Equity Ratio of 0.80. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio (TTM)
CTSH
100.81
IT Services Industry
- Max
- 129.00
- Q3
- 56.00
- Median
- 11.69
- Q1
- 1.68
- Min
- -28.15
CTSH’s Interest Coverage Ratio of 100.81 is in the upper quartile for the IT Services industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
MCHP
1.16
Semiconductors & Semiconductor Equipment Industry
- Max
- 174.00
- Q3
- 81.21
- Median
- 22.37
- Q1
- 6.43
- Min
- -7.80
In the lower quartile for the Semiconductors & Semiconductor Equipment industry, MCHP’s Interest Coverage Ratio of 1.16 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
Financial Strength at a Glance
| Symbol | CTSH | MCHP |
|---|---|---|
| Current Ratio (MRQ) | 2.36 | 2.25 |
| Quick Ratio (MRQ) | 2.36 | 1.20 |
| Debt-to-Equity Ratio (MRQ) | 0.04 | 0.80 |
| Interest Coverage Ratio (TTM) | 100.81 | 1.16 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
CTSH
1.73%
IT Services Industry
- Max
- 4.66%
- Q3
- 2.02%
- Median
- 0.66%
- Q1
- 0.00%
- Min
- 0.00%
CTSH’s Dividend Yield of 1.73% is consistent with its peers in the IT Services industry, providing a dividend return that is standard for its sector.
MCHP
3.58%
Semiconductors & Semiconductor Equipment Industry
- Max
- 3.58%
- Q3
- 1.59%
- Median
- 0.61%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 3.58%, MCHP offers a more attractive income stream than most of its peers in the Semiconductors & Semiconductor Equipment industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio (TTM)
CTSH
28.62%
IT Services Industry
- Max
- 93.78%
- Q3
- 63.22%
- Median
- 24.64%
- Q1
- 0.00%
- Min
- 0.00%
CTSH’s Dividend Payout Ratio of 28.62% is within the typical range for the IT Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
MCHP
656.12%
Semiconductors & Semiconductor Equipment Industry
- Max
- 211.90%
- Q3
- 88.01%
- Median
- 25.84%
- Q1
- 0.00%
- Min
- 0.00%
At 656.12%, MCHP’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Semiconductors & Semiconductor Equipment industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.
Dividend at a Glance
| Symbol | CTSH | MCHP |
|---|---|---|
| Dividend Yield (TTM) | 1.73% | 3.58% |
| Dividend Payout Ratio (TTM) | 28.62% | 656.12% |
Valuation
Price-to-Earnings Ratio (TTM)
CTSH
16.50
IT Services Industry
- Max
- 45.03
- Q3
- 30.25
- Median
- 21.01
- Q1
- 16.50
- Min
- 0.00
CTSH’s P/E Ratio of 16.50 is within the middle range for the IT Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
MCHP
--
Semiconductors & Semiconductor Equipment Industry
- Max
- 95.58
- Q3
- 58.67
- Median
- 34.77
- Q1
- 25.45
- Min
- 12.63
P/E Ratio data for MCHP is currently unavailable.
Price-to-Sales Ratio (TTM)
CTSH
1.68
IT Services Industry
- Max
- 5.24
- Q3
- 4.01
- Median
- 2.18
- Q1
- 1.08
- Min
- 0.00
CTSH’s P/S Ratio of 1.68 aligns with the market consensus for the IT Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
MCHP
6.86
Semiconductors & Semiconductor Equipment Industry
- Max
- 18.34
- Q3
- 10.38
- Median
- 5.38
- Q1
- 2.49
- Min
- 0.32
MCHP’s P/S Ratio of 6.86 aligns with the market consensus for the Semiconductors & Semiconductor Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
CTSH
2.20
IT Services Industry
- Max
- 9.42
- Q3
- 5.79
- Median
- 3.70
- Q1
- 2.30
- Min
- 0.79
CTSH’s P/B Ratio of 2.20 is in the lower quartile for the IT Services industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
MCHP
5.18
Semiconductors & Semiconductor Equipment Industry
- Max
- 16.22
- Q3
- 8.33
- Median
- 4.39
- Q1
- 1.79
- Min
- 0.30
MCHP’s P/B Ratio of 5.18 is within the conventional range for the Semiconductors & Semiconductor Equipment industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | CTSH | MCHP |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 16.50 | -- |
| Price-to-Sales Ratio (TTM) | 1.68 | 6.86 |
| Price-to-Book Ratio (MRQ) | 2.20 | 5.18 |
| Price-to-Free Cash Flow Ratio (TTM) | 13.24 | 38.31 |