Microchip Technology (NASDAQ:MCHP) & Rubicon Technology (NASDAQ:RBCN) Financial Survey

Microchip Technology (NASDAQ:MCHP) and Rubicon Technology (NASDAQ:RBCN) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, dividends, analyst recommendations, valuation, profitability and earnings.

Profitability

This table compares Microchip Technology and Rubicon Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Microchip Technology	20.80%	28.33%	11.91%
Rubicon Technology	23.86%	38.49%	24.82%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Microchip Technology and Rubicon Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Microchip Technology	0	5	14	0	2.74
Rubicon Technology	0	0	0	0	N/A

Microchip Technology currently has a consensus price target of $97.89, indicating a potential upside of 33.43%. Given Microchip Technology’s higher probable upside, analysts clearly believe Microchip Technology is more favorable than Rubicon Technology.

Earnings & Valuation

This table compares Microchip Technology and Rubicon Technology”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Microchip Technology	$6.59 billion	5.98	$1.91 billion	$2.50	29.35
Rubicon Technology	$3.88 million	0.80	-$10,000.00	$0.19	6.84

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

Volatility & Risk

Microchip Technology has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500. Comparatively, Rubicon Technology has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500.

Dividends

Microchip Technology pays an annual dividend of $1.81 per share and has a dividend yield of 2.5%. Rubicon Technology pays an annual dividend of $11.00 per share and has a dividend yield of 846.2%. Microchip Technology pays out 72.4% of its earnings in the form of a dividend. Rubicon Technology pays out 5,789.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Microchip Technology has increased its dividend for 23 consecutive years.

Institutional & Insider Ownership

91.5% of Microchip Technology shares are owned by institutional investors. Comparatively, 0.0% of Rubicon Technology shares are owned by institutional investors. 2.1% of Microchip Technology shares are owned by insiders. Comparatively, 3.6% of Rubicon Technology shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Microchip Technology beats Rubicon Technology on 11 of the 16 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 Rubicon Technology

Rubicon Technology, Inc. provides monocrystalline sapphire for applications in optical and industrial systems in North America, Asia, and internationally. The company offers optical and industrial sapphire products in various shapes and sizes, including sheets, rods, tubes, core, ingots, and prisms for a range of end markets comprising defense and aerospace, specialty lighting, instrumentation, sensors and detectors, semiconductor process equipment, electronic substrates, medical, and laser applications. It serves defense subcontractors, industrial manufacturers, fabricators, and resellers. The company was incorporated in 2001 and is based in Bensenville, Illinois.