Head-To-Head Review: OmniVision Technologies (OVTI) versus Microchip Technology (MCHP)
OmniVision Technologies (NASDAQ: OVTI) and Microchip Technology (NASDAQ:MCHP) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.
Earnings & Valuation
This table compares OmniVision Technologies and Microchip Technology’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Microchip Technology||$3.58 billion||5.71||$1.25 billion||$1.87||46.99|
Microchip Technology has higher revenue and earnings than OmniVision Technologies.
This table compares OmniVision Technologies and Microchip Technology’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings for OmniVision Technologies and Microchip Technology, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Microchip Technology has a consensus target price of $89.29, suggesting a potential upside of 1.61%. Given Microchip Technology’s higher probable upside, analysts clearly believe Microchip Technology is more favorable than OmniVision Technologies.
Institutional & Insider Ownership
98.7% of Microchip Technology shares are held by institutional investors. 2.1% of Microchip Technology shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Microchip Technology pays an annual dividend of $1.45 per share and has a dividend yield of 1.7%. OmniVision Technologies does not pay a dividend. Microchip Technology pays out 77.5% 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 raised its dividend for 15 consecutive years.
Microchip Technology beats OmniVision Technologies on 10 of the 11 factors compared between the two stocks.
About OmniVision Technologies
OmniVision Technologies, Inc. (OmniVision) designs, develops, manufactures and markets image-sensor devices. The Company’s primary product, a semiconductor image-sensing device called the CameraChip, is used to capture an image electronically, and is used in a range of consumer and commercial mass-market applications. Its CameraChip image sensors are manufactured using the complementary metal oxide semiconductor (CMOS) fabrication process and are primarily single-chip solutions that integrate various functions, including image capture, image processing, color processing, signal conversion and output of a processed image or video stream. The Company has also integrated its CameraChip image sensors with wafer-level optics, called CameraCubeChip imaging devices. Its CameraCubeChip imaging device is a small-footprint, total camera solution. OmniVision, through Aurora Systems, Inc., offers a dual-camera video sharing technology called Video-in-Video (ViV).
About Microchip Technology
Microchip Technology Incorporated is engaged in developing, manufacturing and selling specialized semiconductor products used by its customers for a range of embedded control applications. The Company operates through two segments: semiconductor products and technology licensing. In the semiconductor products segment, the Company designs, develops, manufactures and markets microcontrollers, development tools and analog, interface, mixed signal and timing products. Its functional activities include sales, marketing, manufacturing, information technology, human resources, legal and finance. Its product portfolio comprises general purpose and specialized 8-bit, 16-bit, and 32-bit microcontrollers, a spectrum of linear, mixed-signal, power management, thermal management, radio frequency (RF), timing, safety, security, wired connectivity and wireless connectivity devices, as well as serial electrically erasable programmable read-only memories (EEPROMs) and serial flash memories.
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