Microchip Technology (NASDAQ:MCHP – Get Free Report) and Atomera (NASDAQ:ATOM – Get Free Report) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Microchip Technology and Atomera, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Microchip Technology | 0 | 6 | 10 | 1 | 2.71 |
| Atomera | 0 | 0 | 0 | 0 | N/A |
Microchip Technology presently has a consensus target price of $91.56, indicating a potential upside of 2.05%. Atomera has a consensus target price of $17.00, indicating a potential upside of 88.89%. Given Atomera’s higher possible upside, analysts plainly believe Atomera is more favorable than Microchip Technology.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Microchip Technology | $8.44 billion | 5.79 | $2.24 billion | $4.01 | 22.37 |
| Atomera | $380,000.00 | 578.13 | -$17.44 million | ($0.79) | -11.39 |
Microchip Technology has higher revenue and earnings than Atomera. Atomera is trading at a lower price-to-earnings ratio than Microchip Technology, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Microchip Technology and Atomera’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Microchip Technology | 26.52% | 51.12% | 19.64% |
| Atomera | N/A | -90.43% | -68.68% |
Risk & Volatility
Microchip Technology has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500. Comparatively, Atomera has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500.
Institutional & Insider Ownership
91.5% of Microchip Technology shares are owned by institutional investors. Comparatively, 31.0% of Atomera shares are owned by institutional investors. 2.0% of Microchip Technology shares are owned by company insiders. Comparatively, 13.0% of Atomera shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Microchip Technology beats Atomera on 11 of the 14 factors compared between the two stocks.
About Microchip Technology
Microchip Technology Incorporated develops, manufactures, and sells 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 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 application development tools that enable system designers to program microcontroller, FPGA, and microprocessor products for specific applications; field-programmable gate array (FPGA) products; and 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. 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. Microchip Technology Incorporated was incorporated in 1989 and is headquartered in Chandler, Arizona.
About Atomera
Atomera Incorporated engages in the developing, commercializing, and licensing proprietary processes and technologies for the semiconductor industry in North America and the Asia Pacific. The company's lead technology is the Mears Silicon Technology, a thin film of reengineered silicon that can be applied as a transistor channel enhancement to CMOS-type transistors. Its customers include foundries, integrated device manufacturers, fabless semiconductor manufacturers, original equipment manufacturers, and electronic design automation companies. The company was formerly known as Mears Technologies, Inc. and changed its name to Atomera Incorporated in January 2016. Atomera Incorporated was founded in 2001 and is headquartered in Los Gatos, California.
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