Head-To-Head Survey: Microchip Technology (NASDAQ:MCHP) and T1 Energy (NYSE:TE)
by Sarita Garza · The Markets DailyMicrochip Technology (NASDAQ:MCHP – Get Free Report) and T1 Energy (NYSE:TE – Get Free Report) are both technology companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.
Institutional & Insider Ownership
91.5% of Microchip Technology shares are held by institutional investors. Comparatively, 52.3% of T1 Energy shares are held by institutional investors. 1.8% of Microchip Technology shares are held by company insiders. Comparatively, 22.4% of T1 Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Microchip Technology and T1 Energy”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Microchip Technology | $4.71 billion | 8.55 | $230.00 million | $0.67 | 110.75 |
| T1 Energy | $755.29 million | 1.80 | -$367.83 million | ($1.98) | -2.33 |
Microchip Technology has higher revenue and earnings than T1 Energy. T1 Energy is trading at a lower price-to-earnings ratio than Microchip Technology, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Microchip Technology has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500. Comparatively, T1 Energy has a beta of 2.25, meaning that its stock price is 125% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Microchip Technology and T1 Energy, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Microchip Technology | 0 | 8 | 13 | 3 | 2.79 |
| T1 Energy | 1 | 3 | 5 | 1 | 2.60 |
Microchip Technology presently has a consensus target price of $98.67, suggesting a potential upside of 32.97%. T1 Energy has a consensus target price of $8.67, suggesting a potential upside of 87.79%. Given T1 Energy’s higher probable upside, analysts clearly believe T1 Energy is more favorable than Microchip Technology.
Profitability
This table compares Microchip Technology and T1 Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Microchip Technology | 9.34% | 14.97% | 6.80% |
| T1 Energy | -38.49% | -149.67% | -20.46% |
Summary
Microchip Technology beats T1 Energy on 12 of the 15 factors compared between the two stocks.
About Microchip Technology
Microchip Technology Incorporated engages in the development, manufacture, and sale of smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications. It also provides analog, interface, mixed signal, and timing products comprising power management, linear, mixed-signal, high-voltage, thermal management, discrete diodes, and metal oxide semiconductor field effect transistors (MOSFETS), radio frequency (RF), drivers, safety, security, timing, USB, Ethernet, wireless, and other interface products; field-programmable gate array (FPGA) products; and application development tools that enable system designers to program microcontroller, FPGA, and microprocessor products for specific applications. In addition, the company offers serial electrically erasable programmable read-only memory, serial flash memories, parallel flash memories, serial static random access memories, and serial electrically erasable random access memories for the production of very small footprint devices; and licenses its SuperFlash embedded flash and non-volatile memory technologies to foundries, integrated device manufacturers, and design partners for use in the manufacture of microcontroller products, gate array, RF, analog, and neuromorphic compute products that require embedded non-volatile memory, as well as provides engineering services. Further, it offers wafer foundry and assembly, and test subcontracting manufacturing services; and timing systems products, application specific integrated circuits, and aerospace products. The company was incorporated in 1989 and is headquartered in Chandler, Arizona.
About T1 Energy
T1 Energy Inc. is an energy solutions provider building an integrated supply chain for solar and batteries. T1 Energy Inc. , formerly known as FREYR Battery, is based in NEW YORK.