Comparing Renesas Electronics (OTCMKTS:RNECF) and Microchip Technology (NASDAQ:MCHP)

Microchip Technology ( NASDAQ:MCHP – Get Your Free Report ) and Renesas Electronics ( OTCMKTS:RNECF – Get Your Free Report ) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

return

This table compares Microchip Technology and Renesas Electronics’ net margins, return on equity and return on assets.

Institutional and privileged ownership

91.5% of Microchip Technology shares are owned by institutional investors. Comparatively, 0.2% of Renesas Electronics shares are held by institutional investors. 2.1% of Microchip Technology shares are owned by insiders. Strong institutional ownership is an indication that endowments, big money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Rating

This table compares Microchip Technology and Renesas Electronics’ top-line revenue, earnings per share and valuation.

Microchip Technology has higher revenue and earnings than Renesas Electronics. Renesas Electronics is trading at a lower price-to-earnings ratio than Microchip Technology, indicating that it is currently the more affordable of the two stocks.

Analyst recommendations

This is a summary of recent ratings and recommendations for Microchip Technology and Renesas Electronics, as reported by MarketBeat.com.

Microchip Technology currently has a consensus target price of $99.95, suggesting a potential upside of 22.20%. Given Microchip Technology’s higher possible upside, research analysts clearly believe Microchip Technology is more favorable than Renesas Electronics.

Summary

Microchip Technology beats Renesas Electronics in 9 of the 10 factors compared between the two stocks.

About Microchip Technology

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Microchip Technology Incorporated is engaged in the development, manufacture and sale of intelligent, connected and secure integrated control solutions in the Americas, Europe and Asia. The company offers 8-bit, 16-bit, and 32-bit general-purpose mixed-signal microcontrollers; embedded 32-bit mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human-machine interface, security, wired and wireless connectivity applications. It also offers analog, interface, mixed-signal, and timing products, including 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, synchronization, USB, Ethernet, wireless and other interface products; FPGA products (field-programmable gate array); and application development tools that allow system designers to program microcontroller, FPGA, and microprocessor products for specific applications. In addition, the company offers serial and programmable read-only, electrically erasable, serial flash memories, parallel flash memories, static random access serial memories, and electrically erasable serial random access memories for ultra-small footprint device manufacturing; and licenses SuperFlash embedded Flash and non-volatile memory technologies to foundries, integrated device manufacturers and design partners for use in the manufacture of microcontroller, gate array, RF, analog and neuromorphic computing products that require embedded non-volatile memory; as well as provide engineering services. In addition, it offers foundry and wafer assembly services, as well as test subcontracting services; and timing system products, application-specific integrated circuits, and aerospace products. The company was founded in 1989 and is headquartered in Chandler, Arizona.

About Renesas Electronics

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Renesas Electronics Corporation researches, develops, designs, manufactures, sells and services semiconductors in Japan, China, the rest of Asia, Europe, North America and internationally. The company operates through the Automotive Business and Industrial/Infrastructure/IoT Business segments. Provides microcontrollers (MCUs) and microprocessors; amplifiers, audio and video, data converters, power line communications and switch and multiplexer products; and specific clocks, clock distribution and generation, crystal oscillator and frequency translation jitter attenuators, and VersaClock programmable clocks. The company also offers pads, haptic drivers, data compression, industrial Ethernet, IO-link line driver, memory interface, optical interconnect, photocouplers/optocouplers, power line communication, signal integrity, communications and telecommunications interface , switches and USB hubs and wireless connectivity products. In addition, it offers bus switches, first-in, first-out, memory interface, multi-port and SRAMs, non-volatile memory and standard logic products; and AC/DC and Isolated DC/DC Converters, Battery Management, DC Converters, Digital Power, Discrete Power Devices, Linear Regulators, FET and Motor Drivers, Multi-Channel Power Management ICs, LED Backlight Drivers, Lighting solid state, USB-C type, USB power supply and fast charging, voltage references and wireless power. In addition, the company provides automotive radar sensors, industrial radar sensors, modulators and demodulators, phased array beamformers, transistor arrays and variable gain amplifiers, as well as RF amplifiers, attenuators, mixers, switches and synthesizers; and environmental, flow, industrial radar, optical, position and automotive sensor products, as well as sensory signal conditioning products. In addition, it offers space and harsh environment products and wireless connectivity products. Renesas Electronics Corporation was established in 2002 and is headquartered in Tokyo, Japan.

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