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MCHP vs. TXN: Microchip vs. Texas Instruments Stock Comparison

How do Microchip (MCHP) and Texas Instruments (TXN) 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 Texas Instruments (TXN) are both classified in the Semiconductors sub-industry within the broader Semiconductors & Semiconductor Equipment industry, placing them in the closest GICS peer bucket.

Company profile comparison for Microchip (MCHP) and Texas Instruments (TXN)
Profile ItemMCHPTXN
NameMicrochip Technology Inc.Texas Instruments Inc.
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSemiconductors & Semiconductor EquipmentSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor EquipmentSemiconductors & Semiconductor Equipment
GICS Sub-IndustrySemiconductorsSemiconductors
Market Capitalization31.76 billion USD253.58 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateMarch 19, 1993June 1, 1972
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

MCHP
TXN
GSPC
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Microchip (MCHP) vs. Texas Instruments (TXN), 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

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Trailing total returns for Microchip (MCHP) and Texas Instruments (TXN). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Microchip (MCHP) and Texas Instruments (TXN)
MetricMCHPTXN
Total Return (1Y)11.53%86.19%
Total Return (3Y, Annualized)-3.63%30.37%
Total Return (5Y, Annualized)-3.83%12.03%

Risk Profile

Drawdown History

MCHP
TXN
GSPC
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Microchip (MCHP) vs. Texas Instruments (TXN), 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

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

Risk Metrics

Risk profile metrics for Microchip (MCHP) and Texas Instruments (TXN)
MetricMCHPTXN
Volatility (1Y, Annualized)52.96%44.27%
Beta (5Y)1.911.40
Max Drawdown (5Y)-63.77%-33.41%
Avg. Volume (3M)10.34M6.57M

Risk-Adjusted Performance

Risk-Return Positioning

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MCHP and TXN 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 Texas Instruments (TXN)
MetricMCHPTXN
Sharpe Ratio (1Y)0.141.85
Sortino Ratio (1Y)0.213.15

Profitability

ROE (TTM)

Texas Instruments (TXN) at 39.72% sits in the top ROE quartile, while Microchip (MCHP) at 12.57% is closer to the peer norm — stronger capital efficiency for TXN.

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%

TXN

Semiconductors & Semiconductor Equipment industry group

39.72%

Max
52.82%
TXN
39.72%
Q3
22.26%
Median
10.58%
Q1
1.29%
Min
-16.89%
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Microchip (MCHP) vs. Texas Instruments (TXN): A comparison of their ROE against the Semiconductors & Semiconductor Equipment industry group benchmark.

Net Margin (TTM)

Texas Instruments (TXN) at 34.25% retains a top-quartile share of revenue as profit, ahead of Microchip (MCHP) at 14.96%, which keeps about the industry-typical share.

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%

TXN

Semiconductors & Semiconductor Equipment industry group

34.25%

Max
63.80%
TXN
34.25%
Q3
28.36%
Median
11.44%
Q1
0.90%
Min
-37.77%
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Microchip (MCHP) vs. Texas Instruments (TXN): A comparison of their net margin against the Semiconductors & Semiconductor Equipment industry group benchmark.

Operating Margin (TTM)

Texas Instruments (TXN) at 47.55% 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%

TXN

Semiconductors & Semiconductor Equipment industry group

47.55%

Max
58.66%
TXN
47.55%
Q3
30.23%
Median
15.91%
Q1
7.54%
Min
-25.74%
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Microchip (MCHP) vs. Texas Instruments (TXN): A comparison of their operating margin against the Semiconductors & Semiconductor Equipment industry group benchmark.

Profitability Metrics

Profitability metrics for Microchip (MCHP) and Texas Instruments (TXN)
MetricMCHPTXN
ROE (TTM)12.57%39.72%
ROA (TTM)5.19%14.85%
Net Margin (TTM)14.96%34.25%
Operating Margin (TTM)29.13%47.55%
Gross Margin (TTM)62.70%60.24%

Growth

Revenue Growth

Both Microchip (MCHP) at 7.08% and Texas Instruments (TXN) at 13.05% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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Microchip (MCHP) vs. Texas Instruments (TXN): A comparison of their Revenue Growth across different time periods.

EPS Growth

Only one side can be read here: Texas Instruments (TXN) reports EPS growth of 4.81%, ranked against its industry; Microchip (MCHP) has no EPS growth figure this period.

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Microchip (MCHP) vs. Texas Instruments (TXN): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Microchip (MCHP) and Texas Instruments (TXN)
MetricMCHPTXN
Revenue Growth (YoY)7.08%13.05%
Revenue Growth (3Y CAGR)-17.65%-4.07%
EPS Growth (YoY)--4.81%
EPS Growth (3Y CAGR)-62.03%-16.64%

Financial Strength

Current Ratio (MRQ)

Texas Instruments (TXN) at 5.60 keeps current ratio within its industry’s typical mid-range, while Microchip (MCHP) at 2.24 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for MCHP.

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

TXN

Semiconductors & Semiconductor Equipment industry group

5.60

Max
10.33
Q3
5.62
TXN
5.60
Median
3.33
Q1
2.35
Min
1.03
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Microchip (MCHP) vs. Texas Instruments (TXN): A comparison of their current ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Debt / Equity (MRQ)

Both Microchip (MCHP) at 0.84 and Texas Instruments (TXN) at 0.71 lean more heavily on debt funding than most peers, landing in the higher-leverage quartile of their industries.

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

TXN

Semiconductors & Semiconductor Equipment industry group

0.71

Max
1.46
TXN
0.71
Q3
0.65
Median
0.27
Q1
0.04
Min
0.00
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Microchip (MCHP) vs. Texas Instruments (TXN): 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 Texas Instruments (TXN)
MetricMCHPTXN
Current Ratio (MRQ)2.245.60
Debt / Equity (MRQ)0.840.71
Net Debt / EBITDA2.730.51

Dividends

Dividend Yield (TTM)

Both Microchip (MCHP) at 2.81% and Texas Instruments (TXN) at 2.04% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.

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%

TXN

Semiconductors & Semiconductor Equipment industry group

2.04%

TXN
2.04%
Max
1.37%
Q3
0.65%
Median
0.00%
Q1
0.00%
Min
0.00%
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Microchip (MCHP) vs. Texas Instruments (TXN): 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 Texas Instruments (TXN) reports 73.67%, 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%

TXN

Semiconductors & Semiconductor Equipment industry group

73.67%

TXN
73.67%
Max
49.64%
Q3
21.71%
Median
0.00%
Q1
0.00%
Min
0.00%
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Microchip (MCHP) vs. Texas Instruments (TXN): A comparison of their payout ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Dividend Metrics

Dividend metrics for Microchip (MCHP) and Texas Instruments (TXN)
MetricMCHPTXN
Dividend Yield (TTM)2.81%2.04%
Dividend Payout Ratio (TTM)136.84%73.67%

Valuation

P/E Ratio (TTM)

Both Microchip (MCHP) at 43.87 and Texas Instruments (TXN) at 35.97 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

TXN

Semiconductors & Semiconductor Equipment industry group

35.97

Max
110.34
Q3
66.81
Median
37.02
TXN
35.97
Q1
23.96
Min
8.12
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Microchip (MCHP) vs. Texas Instruments (TXN): 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 Texas Instruments (TXN) at 12.21 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

TXN

Semiconductors & Semiconductor Equipment industry group

12.21

Max
21.42
Q3
12.27
TXN
12.21
Median
5.76
Q1
2.73
Min
0.00
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Microchip (MCHP) vs. Texas Instruments (TXN): 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 Texas Instruments (TXN) at 13.21 carries an above-peer premium to book — TXN 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

TXN

Semiconductors & Semiconductor Equipment industry group

13.21

Max
14.06
TXN
13.21
Q3
7.44
Median
4.29
Q1
2.30
Min
0.20
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Microchip (MCHP) vs. Texas Instruments (TXN): A comparison of their P/B ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Valuation Metrics

Valuation metrics for Microchip (MCHP) and Texas Instruments (TXN)
MetricMCHPTXN
P/E Ratio (TTM)43.8735.97
P/S Ratio (TTM)5.6712.21
P/B Ratio (MRQ)4.7813.21
Free Cash Flow Yield (TTM)4.85%1.88%