MCHP vs. TER: Microchip vs. Teradyne Stock Comparison

November 11, 2026

How do Microchip (MCHP) and Teradyne (TER) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Microchip (MCHP) and Teradyne (TER) both belong to the Semiconductors & Semiconductor Equipment industry, though MCHP is classified under Semiconductors while TER falls under Semiconductor Materials & Equipment.

Company profile comparison for Microchip (MCHP) and Teradyne (TER)
Profile Item	MCHP	TER
Name	Microchip Technology Inc.	Teradyne, Inc.
Country/Region	United States	United States
GICS Sector	Information Technology	Information Technology
GICS Industry Group	Semiconductors & Semiconductor Equipment	Semiconductors & Semiconductor Equipment
GICS Industry	Semiconductors & Semiconductor Equipment	Semiconductors & Semiconductor Equipment
GICS Sub-Industry	Semiconductors	Semiconductor Materials & Equipment
Market Capitalization	31.76 billion USD	34.07 billion USD
Currency	USD	USD
Exchange	Nasdaq	Nasdaq
Listing Date	March 19, 1993	February 21, 1973
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

MCHP

TER

GSPC

Microchip (MCHP) vs. Teradyne (TER), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

Loading price history…

Trailing total returns for Microchip (MCHP) and Teradyne (TER). Returns over one year are annualized.

Calendar-Year Returns

Loading price history…

Calendar-year total returns for Microchip (MCHP) and Teradyne (TER). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Microchip (MCHP) and Teradyne (TER)
Metric	MCHP	TER
Total Return (1Y)	11.53%	31.13%
Total Return (3Y, Annualized)	-3.63%	41.60%
Total Return (5Y, Annualized)	-3.83%	10.83%

Risk Profile

Drawdown History

MCHP

TER

GSPC

Microchip (MCHP) vs. Teradyne (TER), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

Loading price history…

Distribution of monthly total returns for Microchip (MCHP) and Teradyne (TER). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Microchip (MCHP) and Teradyne (TER)
Metric	MCHP	TER
Volatility (1Y, Annualized)	52.96%	78.35%
Beta (5Y)	1.91	1.78
Max Drawdown (5Y)	-63.77%	-59.12%
Avg. Volume (3M)	10.34M	3.01M

Risk-Adjusted Performance

Risk-Return Positioning

MCHP and TER are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Microchip (MCHP) and Teradyne (TER)
Metric	MCHP	TER
Sharpe Ratio (1Y)	0.14	0.34
Sortino Ratio (1Y)	0.21	0.48

Profitability

ROE (TTM)

Teradyne (TER) at 42.72% sits in the top ROE quartile, while Microchip (MCHP) at 12.57% is closer to the peer norm — stronger capital efficiency for TER.

MCHP

Semiconductors & Semiconductor Equipment industry group

12.57%

Max: 52.82%
Q3: 22.26%
MCHP: 12.57%
Median: 10.58%
Q1: 1.29%
Min: -16.89%

TER

Semiconductors & Semiconductor Equipment industry group

42.72%

Max: 52.82%
TER: 42.72%
Q3: 22.26%
Median: 10.58%
Q1: 1.29%
Min: -16.89%

Microchip (MCHP) vs. Teradyne (TER): A comparison of their ROE against the Semiconductors & Semiconductor Equipment industry group benchmark.

Net Margin (TTM)

Both Microchip (MCHP) at 14.96% and Teradyne (TER) at 27.46% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.

MCHP

Semiconductors & Semiconductor Equipment industry group

14.96%

Max: 63.80%
Q3: 28.36%
MCHP: 14.96%
Median: 11.44%
Q1: 0.90%
Min: -37.77%

TER

Semiconductors & Semiconductor Equipment industry group

27.46%

Max: 63.80%
Q3: 28.36%
TER: 27.46%
Median: 11.44%
Q1: 0.90%
Min: -37.77%

Microchip (MCHP) vs. Teradyne (TER): A comparison of their net margin against the Semiconductors & Semiconductor Equipment industry group benchmark.

Operating Margin (TTM)

Teradyne (TER) at 30.87% operates in the top operating margin quartile, ahead of Microchip (MCHP) at 29.13%, which runs around its industry’s norm.

MCHP

Semiconductors & Semiconductor Equipment industry group

29.13%

Max: 58.66%
Q3: 30.23%
MCHP: 29.13%
Median: 15.91%
Q1: 7.54%
Min: -25.74%

TER

Semiconductors & Semiconductor Equipment industry group

30.87%

Max: 58.66%
TER: 30.87%
Q3: 30.23%
Median: 15.91%
Q1: 7.54%
Min: -25.74%

Microchip (MCHP) vs. Teradyne (TER): A comparison of their operating margin against the Semiconductors & Semiconductor Equipment industry group benchmark.

Profitability Metrics

Profitability metrics for Microchip (MCHP) and Teradyne (TER)
Metric	MCHP	TER
ROE (TTM)	12.57%	42.72%
ROA (TTM)	5.19%	21.59%
Net Margin (TTM)	14.96%	27.46%
Operating Margin (TTM)	29.13%	30.87%
Gross Margin (TTM)	62.70%	59.32%

Growth

Revenue Growth

Both Microchip (MCHP) at 7.08% and Teradyne (TER) at 13.13% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

Microchip (MCHP) vs. Teradyne (TER): A comparison of their Revenue Growth across different time periods.

EPS Growth

Only one side can be read here: Teradyne (TER) reports EPS growth of 4.52%, ranked against its industry; Microchip (MCHP) has no EPS growth figure this period.

Microchip (MCHP) vs. Teradyne (TER): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Microchip (MCHP) and Teradyne (TER)
Metric	MCHP	TER
Revenue Growth (YoY)	7.08%	13.13%
Revenue Growth (3Y CAGR)	-17.65%	0.37%
EPS Growth (YoY)	--	4.52%
EPS Growth (3Y CAGR)	-62.03%	-6.31%

Financial Strength

Current Ratio (MRQ)

Both Microchip (MCHP) at 2.24 and Teradyne (TER) at 2.08 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.

MCHP

Semiconductors & Semiconductor Equipment industry group

2.24

Max: 10.33
Q3: 5.62
Median: 3.33
Q1: 2.35
MCHP: 2.24
Min: 1.03

TER

Semiconductors & Semiconductor Equipment industry group

2.08

Max: 10.33
Q3: 5.62
Median: 3.33
Q1: 2.35
TER: 2.08
Min: 1.03

Microchip (MCHP) vs. Teradyne (TER): A comparison of their current ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Debt / Equity (MRQ)

Teradyne (TER) at 0.04 keeps leverage in the lower quartile, while Microchip (MCHP) at 0.84 sits in the higher-leverage quartile.

MCHP

Semiconductors & Semiconductor Equipment industry group

0.84

Max: 1.46
MCHP: 0.84
Q3: 0.65
Median: 0.27
Q1: 0.04
Min: 0.00

TER

Semiconductors & Semiconductor Equipment industry group

0.04

Max: 1.46
Q3: 0.65
Median: 0.27
Q1: 0.04
TER: 0.04
Min: 0.00

Microchip (MCHP) vs. Teradyne (TER): A comparison of their debt-to-equity ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Microchip (MCHP) and Teradyne (TER)
Metric	MCHP	TER
Current Ratio (MRQ)	2.24	2.08
Debt / Equity (MRQ)	0.84	0.04
Net Debt / EBITDA	2.73	-0.19

Dividends

Dividend Yield (TTM)

Teradyne (TER) at 0.24% pays an industry-typical yield; Microchip (MCHP) at 2.81% is above its entire peer range — the higher number, but one that calls for a look at payout sustainability before treating it as an advantage.

MCHP

Semiconductors & Semiconductor Equipment industry group

2.81%

MCHP: 2.81%
Max: 1.37%
Q3: 0.65%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

TER

Semiconductors & Semiconductor Equipment industry group

0.24%

Max: 1.37%
Q3: 0.65%
TER: 0.24%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Microchip (MCHP) vs. Teradyne (TER): A comparison of their dividend yield against the Semiconductors & Semiconductor Equipment industry group benchmark.

Dividend Payout Ratio (TTM)

Microchip (MCHP) reports payout ratio above 100% at 136.84%, meaning dividends exceeded current-period earnings and sustainability needs extra context. Meanwhile Teradyne (TER) reports 5.86%, ranking against industry peers normally.

MCHP

Semiconductors & Semiconductor Equipment industry group

136.84%

MCHP: 136.84%
Max: 49.64%
Q3: 21.71%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

TER

Semiconductors & Semiconductor Equipment industry group

5.86%

Max: 49.64%
Q3: 21.71%
TER: 5.86%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Microchip (MCHP) vs. Teradyne (TER): A comparison of their payout ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Dividend Metrics

Dividend metrics for Microchip (MCHP) and Teradyne (TER)
Metric	MCHP	TER
Dividend Yield (TTM)	2.81%	0.24%
Dividend Payout Ratio (TTM)	136.84%	5.86%

Valuation

P/E Ratio (TTM)

Both Microchip (MCHP) at 43.87 and Teradyne (TER) at 25.08 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

MCHP

Semiconductors & Semiconductor Equipment industry group

43.87

Max: 110.34
Q3: 66.81
MCHP: 43.87
Median: 37.02
Q1: 23.96
Min: 8.12

TER

Semiconductors & Semiconductor Equipment industry group

25.08

Max: 110.34
Q3: 66.81
Median: 37.02
TER: 25.08
Q1: 23.96
Min: 8.12

Microchip (MCHP) vs. Teradyne (TER): A comparison of their P/E ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both Microchip (MCHP) at 5.67 and Teradyne (TER) at 6.81 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

MCHP

Semiconductors & Semiconductor Equipment industry group

5.67

Max: 21.42
Q3: 12.27
Median: 5.76
MCHP: 5.67
Q1: 2.73
Min: 0.00

TER

Semiconductors & Semiconductor Equipment industry group

6.81

Max: 21.42
Q3: 12.27
TER: 6.81
Median: 5.76
Q1: 2.73
Min: 0.00

Microchip (MCHP) vs. Teradyne (TER): A comparison of their P/S ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

P/B Ratio (MRQ)

Microchip (MCHP) at 4.78 is valued about in line with its industry on P/B ratio, while Teradyne (TER) at 9.24 carries an above-peer premium to book — TER is pricier on assets.

MCHP

Semiconductors & Semiconductor Equipment industry group

4.78

Max: 14.06
Q3: 7.44
MCHP: 4.78
Median: 4.29
Q1: 2.30
Min: 0.20

TER

Semiconductors & Semiconductor Equipment industry group

9.24

Max: 14.06
TER: 9.24
Q3: 7.44
Median: 4.29
Q1: 2.30
Min: 0.20

Microchip (MCHP) vs. Teradyne (TER): A comparison of their P/B ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Valuation Metrics

Valuation metrics for Microchip (MCHP) and Teradyne (TER)
Metric	MCHP	TER
P/E Ratio (TTM)	43.87	25.08
P/S Ratio (TTM)	5.67	6.81
P/B Ratio (MRQ)	4.78	9.24
Free Cash Flow Yield (TTM)	4.85%	1.76%