SEALSQ (NASDAQ:LAES) & Microchip Technology (NASDAQ:MCHP) Head-To-Head Review

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Microchip Technology	6.49%	12.62%	5.08%
SEALSQ	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings for Microchip Technology and SEALSQ, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Microchip Technology	1	4	13	1	2.74
SEALSQ	0	0	1	0	3.00

Microchip Technology presently has a consensus target price of $77.11, suggesting a potential upside of 26.76%. SEALSQ has a consensus target price of $1.75, suggesting a potential downside of 42.62%. Given Microchip Technology’s higher possible upside, analysts plainly believe Microchip Technology is more favorable than SEALSQ.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Microchip Technology	$7.63 billion	4.29	$1.91 billion	$0.56	108.63
SEALSQ	$20.14 million	14.27	-$3.27 million	N/A	N/A

Microchip Technology has higher revenue and earnings than SEALSQ.

Volatility and Risk

Microchip Technology has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500. Comparatively, SEALSQ has a beta of -20.65, meaning that its share price is 2,165% less volatile than the S&P 500.

Insider & Institutional Ownership

91.5% of Microchip Technology shares are held by institutional investors. Comparatively, 1.3% of SEALSQ 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 is poised for long-term growth.

Summary

Microchip Technology beats SEALSQ on 11 of the 13 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 SEALSQ

SEALSQ Corp, together with its subsidiaries, designs, develops, and markets semiconductor chips in Europe, the Middle East, Africa, North America, the Asia Pacific, and Latin America. It offers semiconductors, such as VaultIC secure elements, secure arm platform, and smart card reader chips; identity provisioning services, such as IoT device provisioning and chip provisioning; and managed PKI for IoT solutions and trust services. The company provides device-to-cloud authentication, device attestation for matter, GSMA root certificate, device-to-device authentication, data protection, anti-counterfeiting and brand protection, security access, device ID provisioning, identity lifecycle management, and satellite IoT connectivity solutions. Its products are used in various applications, such as smart energy, smart home, automotive EV charging, consumer IoT, aerospace and military, telecommunications, logistics, medical, luxury, and other industrial applications. SEALSQ Corp was founded in 2022 and is based in Cointrin, Switzerland.