Seek Returns logo

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

Updated on

Here’s a clear look at MCHP and UBER, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

UBER’s market capitalization of 195.80 billion USD is significantly greater than MCHP’s 39.41 billion USD, highlighting its more substantial market valuation.

With betas of 1.46 for MCHP and 1.39 for UBER, both stocks show similar sensitivity to overall market movements.

SymbolMCHPUBER
Company NameMicrochip Technology IncorporatedUber Technologies, Inc.
CountryUSUS
SectorTechnologyTechnology
IndustrySemiconductorsSoftware - Application
CEOStephen SanghiDara Khosrowshahi
Price73.06 USD93.63 USD
Market Cap39.41 billion USD195.80 billion USD
Beta1.461.39
ExchangeNASDAQNYSE
IPO DateMarch 19, 1993May 10, 2019
ADRNoNo

Historical Performance

This chart compares the performance of MCHP and UBER 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.

MCHP vs. UBER: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

MCHP

2.39%

Semiconductors Industry

Max
41.84%
Q3
15.81%
Median
6.31%
Q1
-5.54%
Min
-30.12%

MCHP’s Return on Equity of 2.39% is on par with the norm for the Semiconductors industry, indicating its profitability relative to shareholder equity is typical for the sector.

UBER

69.55%

Software - Application Industry

Max
59.01%
Q3
17.85%
Median
4.73%
Q1
-10.56%
Min
-52.94%

UBER’s Return on Equity of 69.55% is exceptionally high, placing it well beyond the typical range for the Software - Application industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

MCHP vs. UBER: A comparison of their ROE against their respective Semiconductors and Software - Application industry benchmarks.

Return on Invested Capital

MCHP

2.07%

Semiconductors Industry

Max
30.91%
Q3
11.34%
Median
4.08%
Q1
-2.17%
Min
-19.59%

MCHP’s Return on Invested Capital of 2.07% is in line with the norm for the Semiconductors industry, reflecting a standard level of efficiency in generating profits from its capital base.

UBER

18.41%

Software - Application Industry

Max
35.07%
Q3
9.72%
Median
0.76%
Q1
-8.68%
Min
-34.12%

In the upper quartile for the Software - Application industry, UBER’s Return on Invested Capital of 18.41% signifies a highly effective use of its capital to generate profits when compared to its peers.

MCHP vs. UBER: A comparison of their ROIC against their respective Semiconductors and Software - Application industry benchmarks.

Net Profit Margin

MCHP

4.49%

Semiconductors Industry

Max
51.69%
Q3
19.67%
Median
8.56%
Q1
-5.44%
Min
-38.60%

MCHP’s Net Profit Margin of 4.49% is aligned with the median group of its peers in the Semiconductors industry. This indicates its ability to convert revenue into profit is typical for the sector.

UBER

27.07%

Software - Application Industry

Max
48.14%
Q3
16.07%
Median
1.83%
Q1
-9.60%
Min
-45.64%

A Net Profit Margin of 27.07% places UBER in the upper quartile for the Software - Application industry, signifying strong profitability and more effective cost management than most of its peers.

MCHP vs. UBER: A comparison of their Net Profit Margin against their respective Semiconductors and Software - Application industry benchmarks.

Operating Profit Margin

MCHP

11.56%

Semiconductors Industry

Max
58.03%
Q3
22.12%
Median
8.40%
Q1
-3.73%
Min
-36.14%

MCHP’s Operating Profit Margin of 11.56% is around the midpoint for the Semiconductors industry, indicating that its efficiency in managing core business operations is typical for the sector.

UBER

8.49%

Software - Application Industry

Max
51.67%
Q3
15.35%
Median
1.79%
Q1
-12.42%
Min
-45.17%

UBER’s Operating Profit Margin of 8.49% is around the midpoint for the Software - Application industry, indicating that its efficiency in managing core business operations is typical for the sector.

MCHP vs. UBER: A comparison of their Operating Margin against their respective Semiconductors and Software - Application industry benchmarks.

Profitability at a Glance

SymbolMCHPUBER
Return on Equity (TTM)2.39%69.55%
Return on Assets (TTM)1.00%23.26%
Return on Invested Capital (TTM)2.07%18.41%
Net Profit Margin (TTM)4.49%27.07%
Operating Profit Margin (TTM)11.56%8.49%
Gross Profit Margin (TTM)57.32%39.58%

Financial Strength

Current Ratio

MCHP

2.59

Semiconductors Industry

Max
9.10
Q3
5.23
Median
3.09
Q1
2.49
Min
1.02

MCHP’s Current Ratio of 2.59 aligns with the median group of the Semiconductors industry, indicating that its short-term liquidity is in line with its sector peers.

UBER

1.02

Software - Application Industry

Max
5.09
Q3
2.84
Median
1.70
Q1
1.12
Min
0.04

UBER’s Current Ratio of 1.02 falls into the lower quartile for the Software - Application industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

MCHP vs. UBER: A comparison of their Current Ratio against their respective Semiconductors and Software - Application industry benchmarks.

Debt-to-Equity Ratio

MCHP

0.80

Semiconductors Industry

Max
0.97
Q3
0.46
Median
0.21
Q1
0.05
Min
0.00

MCHP’s leverage is in the upper quartile of the Semiconductors 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.

UBER

0.51

Software - Application Industry

Max
1.85
Q3
0.77
Median
0.18
Q1
0.05
Min
0.00

UBER’s Debt-to-Equity Ratio of 0.51 is typical for the Software - Application industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

MCHP vs. UBER: A comparison of their D/E Ratio against their respective Semiconductors and Software - Application industry benchmarks.

Interest Coverage Ratio

MCHP

2.09

Semiconductors Industry

Max
36.25
Q3
29.12
Median
7.01
Q1
-1.22
Min
-18.18

MCHP’s Interest Coverage Ratio of 2.09 is positioned comfortably within the norm for the Semiconductors industry, indicating a standard and healthy capacity to cover its interest payments.

UBER

7.65

Software - Application Industry

Max
39.23
Q3
8.55
Median
1.48
Q1
-14.59
Min
-39.97

UBER’s Interest Coverage Ratio of 7.65 is positioned comfortably within the norm for the Software - Application industry, indicating a standard and healthy capacity to cover its interest payments.

MCHP vs. UBER: A comparison of their Interest Coverage against their respective Semiconductors and Software - Application industry benchmarks.

Financial Strength at a Glance

SymbolMCHPUBER
Current Ratio (TTM)2.591.02
Quick Ratio (TTM)1.471.02
Debt-to-Equity Ratio (TTM)0.800.51
Debt-to-Asset Ratio (TTM)0.370.21
Net Debt-to-EBITDA Ratio (TTM)5.060.81
Interest Coverage Ratio (TTM)2.097.65

Growth

The following charts compare key year-over-year (YoY) growth metrics for MCHP and UBER. These metrics are based on the companies’ annual financial reports.

Revenue Growth

MCHP vs. UBER: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

MCHP vs. UBER: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

MCHP vs. UBER: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

MCHP

2.49%

Semiconductors Industry

Max
6.48%
Q3
0.93%
Median
0.00%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 2.49%, MCHP offers a more attractive income stream than most of its peers in the Semiconductors industry, signaling a strong commitment to shareholder returns.

UBER

0.00%

Software - Application Industry

Max
3.66%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

UBER currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

MCHP vs. UBER: A comparison of their Dividend Yield against their respective Semiconductors and Software - Application industry benchmarks.

Dividend Payout Ratio

MCHP

633.16%

Semiconductors Industry

Max
204.29%
Q3
31.85%
Median
0.00%
Q1
0.00%
Min
0.00%

MCHP’s Dividend Payout Ratio of 633.16% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.

UBER

0.00%

Software - Application Industry

Max
81.09%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

UBER has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

MCHP vs. UBER: A comparison of their Payout Ratio against their respective Semiconductors and Software - Application industry benchmarks.

Dividend at a Glance

SymbolMCHPUBER
Dividend Yield (TTM)2.49%0.00%
Dividend Payout Ratio (TTM)633.16%0.00%

Valuation

Price-to-Earnings Ratio

MCHP

254.79

Semiconductors Industry

Max
86.15
Q3
47.38
Median
27.87
Q1
18.89
Min
4.73

At 254.79, MCHP’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Semiconductors industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

UBER

15.95

Software - Application Industry

Max
194.31
Q3
98.56
Median
51.87
Q1
22.76
Min
1.02

In the lower quartile for the Software - Application industry, UBER’s P/E Ratio of 15.95 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

MCHP vs. UBER: A comparison of their P/E Ratio against their respective Semiconductors and Software - Application industry benchmarks.

Forward P/E to Growth Ratio

MCHP

4.85

Semiconductors Industry

Max
4.73
Q3
2.80
Median
1.11
Q1
0.68
Min
0.01

The Forward PEG Ratio is often not a primary valuation metric in the Semiconductors industry.

UBER

0.73

Software - Application Industry

Max
15.44
Q3
6.57
Median
2.78
Q1
0.55
Min
0.00

UBER’s Forward PEG Ratio of 0.73 is within the middle range of its peers in the Software - Application industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

MCHP vs. UBER: A comparison of their Forward PEG Ratio against their respective Semiconductors and Software - Application industry benchmarks.

Price-to-Sales Ratio

MCHP

11.49

Semiconductors Industry

Max
21.96
Q3
10.21
Median
4.45
Q1
2.32
Min
0.48

MCHP’s P/S Ratio of 11.49 is in the upper echelon for the Semiconductors industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

UBER

4.31

Software - Application Industry

Max
23.49
Q3
11.14
Median
5.62
Q1
2.84
Min
0.33

UBER’s P/S Ratio of 4.31 aligns with the market consensus for the Software - Application industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

MCHP vs. UBER: A comparison of their P/S Ratio against their respective Semiconductors and Software - Application industry benchmarks.

Price-to-Book Ratio

MCHP

5.55

Semiconductors Industry

Max
13.12
Q3
6.49
Median
3.31
Q1
1.74
Min
0.23

MCHP’s P/B Ratio of 5.55 is within the conventional range for the Semiconductors 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.

UBER

8.92

Software - Application Industry

Max
21.03
Q3
10.49
Median
6.36
Q1
2.89
Min
0.12

The P/B Ratio is often not a primary valuation metric for the Software - Application industry.

MCHP vs. UBER: A comparison of their P/B Ratio against their respective Semiconductors and Software - Application industry benchmarks.

Valuation at a Glance

SymbolMCHPUBER
Price-to-Earnings Ratio (P/E, TTM)254.7915.95
Forward PEG Ratio (TTM)4.850.73
Price-to-Sales Ratio (P/S, TTM)11.494.31
Price-to-Book Ratio (P/B, TTM)5.558.92
Price-to-Free Cash Flow Ratio (P/FCF, TTM)51.0425.15
EV-to-EBITDA (TTM)45.8027.40
EV-to-Sales (TTM)12.914.45