Microchip Technology (NASDAQ:MCHP – Get Rating) and iSun (NASDAQ:ISUN – Get Rating) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Microchip Technology and iSun, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Microchip Technology | 0 | 6 | 11 | 1 | 2.72 |
| iSun | 0 | 0 | 1 | 0 | 3.00 |
Microchip Technology currently has a consensus target price of $90.11, indicating a potential upside of 11.25%. iSun has a consensus target price of $5.00, indicating a potential upside of 825.93%. Given iSun’s stronger consensus rating and higher probable upside, analysts clearly believe iSun is more favorable than Microchip Technology.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Microchip Technology | 26.52% | 51.12% | 19.64% |
| iSun | -21.24% | -40.04% | -20.34% |
Earnings & Valuation
This table compares Microchip Technology and iSun’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Microchip Technology | $8.44 billion | 5.23 | $2.24 billion | $4.01 | 20.20 |
| iSun | $76.45 million | 0.10 | -$53.78 million | ($1.15) | -0.47 |
Microchip Technology has higher revenue and earnings than iSun. iSun is trading at a lower price-to-earnings ratio than Microchip Technology, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
89.9% of Microchip Technology shares are held by institutional investors. Comparatively, 9.6% of iSun shares are held by institutional investors. 2.0% of Microchip Technology shares are held by insiders. Comparatively, 11.7% of iSun shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Volatility and Risk
Microchip Technology has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500. Comparatively, iSun has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500.
Summary
Microchip Technology beats iSun on 12 of the 15 factors compared between the two stocks.
About Microchip Technology
Microchip Technology, Inc. engages in the provision of semiconductor products. It operates through the Semiconductor Products and Technology Licensing segments. The Semiconductor Products segment is involved in designing, developing, manufacturing, and marketing microcontrollers, development tools and analog, interface, mixed signal, connectivity devices, and timing products. The Technology Licensing segment offers license fees and royalties associated with technology licenses for the use of SuperFlash embedded flash and Smartbits one-time programmable technologies. The company was founded on February 14, 1989, and is headquartered in Chandler, AZ.
About iSun
iSUN, Inc. engages in the provision of design, development, engineering, procurement, installation, storage, and electric vehicle infrastructure services for residential, commercial, industrial, and utility customers. The firm is also involved in providing electrical contracting, and data and communication services. The company was founded in 1972 and is headquartered in Williston, VT.
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