Contrasting VIA optronics (NYSE:VIAO) and Microchip Technology (NASDAQ:MCHP)

Microchip Technology (NASDAQ:MCHP) and VIA optronics (NYSE:VIAO) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Valuation and Earnings

This table compares Microchip Technology and VIA optronics’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Microchip Technology	$8.44 billion	5.99	$2.24 billion	$4.28	21.87
VIA optronics	$230.25 million	N/A	-$10.75 million	N/A	N/A

Microchip Technology has higher revenue and earnings than VIA optronics.

Profitability

This table compares Microchip Technology and VIA optronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Microchip Technology	27.59%	45.59%	19.03%
VIA optronics	N/A	N/A	N/A

Risk & Volatility

Microchip Technology has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500. Comparatively, VIA optronics has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.

Insider and Institutional Ownership

91.5% of Microchip Technology shares are owned by institutional investors. 2.1% of Microchip Technology shares are owned by company insiders. Comparatively, 15.9% of VIA optronics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Microchip Technology and VIA optronics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Microchip Technology	0	5	11	0	2.69
VIA optronics	0	0	0	0	N/A

Microchip Technology presently has a consensus target price of $92.50, suggesting a potential downside of 1.18%. Given Microchip Technology’s higher possible upside, analysts plainly believe Microchip Technology is more favorable than VIA optronics.

Summary

Microchip Technology beats VIA optronics on 9 of the 10 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 VIA optronics

VIA optronics AG, together with its subsidiaries, provides display solutions worldwide. It also develops, manufactures, and sells customized and application-specific metal mesh touch sensors and electrode base film materials for use in touch modules or other touch products. In addition, the company offers interactive display solutions, including curved display panels and solutions integrating multiple display touch assemblies; and optical bonding services, as well as licenses optical bonding process and sells related equipment. It serves automotive, consumer electronics, and industrial/specialized end markets. The company was founded in 2005 and is headquartered in Nuremberg, Germany. VIA optronics AG is a subsidiary of Integrated Micro-Electronics, Inc.