Head-To-Head Review: Dynex Power (OTCMKTS:DNXWF) & Microchip Technology (NASDAQ:MCHP)

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

Insider & Institutional Ownership

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

Earnings and Valuation

This table compares Dynex Power and Microchip Technology’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dynex Power	N/A	N/A	N/A	N/A	N/A
Microchip Technology	$6.59 billion	6.60	$1.91 billion	$3.47	23.34

Microchip Technology has higher revenue and earnings than Dynex Power.

Analyst Ratings

This is a breakdown of recent ratings for Dynex Power and Microchip Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dynex Power	0	0	0	0	N/A
Microchip Technology	0	4	15	0	2.79

Microchip Technology has a consensus price target of $99.95, suggesting a potential upside of 23.42%. Given Microchip Technology’s higher possible upside, analysts plainly believe Microchip Technology is more favorable than Dynex Power.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dynex Power	N/A	N/A	N/A
Microchip Technology	20.80%	27.82%	11.85%

Summary

Microchip Technology beats Dynex Power on 8 of the 8 factors compared between the two stocks.

About Dynex Power

Dynex Power, Inc. engages in the design, manufacture and sale of industrial power equipment. Its equipment includes high power bipolar semiconductors, high power insulated gate bipolar transistor modules, high power electronic assemblies and radiation hard silicon-on-sapphire integrated circuits. Its power products are used in power electronic applications which include electric power transmission and distribution, renewable and distributed energy, marine, and rail traction motor drives, aerospace, electric vehicles, industrial automation and controls and power supplies. Its integrated circuit products are used in applications in the aerospace industry. The company was founded on June 15, 1999 and is headquartered in Lincoln, the United Kingdom.

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.