Microchip Technology Incorporated (MCHP) vs Paychex, Inc. (PAYX)

PAYX leads on 13 of 15 compared metrics.

A side-by-side comparison of Microchip Technology Incorporated and Paychex, Inc. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of July 18, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).

Compare

Total returnMCHP vs PAYX

growth of $100 · dividends reinvested · last 30y
MCHP +6163.9%PAYX +2756.8%MCHP compounded faster
02k4k6k8kStart $100200120062011201620212026$6,264$2,857
MCHP PAYX

MCHP vs PAYX: by the numbers

  • MCHP is the larger company ($43.96B vs $40.68B market cap).
  • PAYX trades at the lower earnings multiple (23.44 vs 305.62 P/E).
  • PAYX converts more revenue to profit (27.03% vs 4.29% net margin).
  • PAYX grew revenue faster over the past five years (9.93% vs -2.82% CAGR).
  • PAYX pays the higher dividend yield (3.87% vs 2.25%).

Which is better, MCHP or PAYX?

Metric tally: MCHP 2 · PAYX 13

It depends on what you're optimizing for:

ValuePAYX(lower P/E)
GrowthPAYX(faster 5Y revenue CAGR)
IncomePAYX(higher dividend yield)
QualityPAYX(higher ROIC)

Metrics side by side

Valuation

MetricMCHPPAYX
P/E ratio305.6223.44
Forward P/E20.82
P/S ratio9.416.29
P/B ratio6.9010.97
PEG ratio3.21
EV / EBITDA42.1015.05
FCF yield1.96%5.67%

Profitability

MetricMCHPPAYX
Gross margin57.73%74.29%
Operating margin10.40%38.55%
Net margin4.29%27.03%
ROE3.14%47.12%
ROIC3.11%20.49%

Dividends

MetricMCHPPAYX
Dividend yield2.25%3.87%
Payout ratio674.07%90.41%

Growth (annualized)

MetricMCHPPAYX
Revenue CAGR (5Y)-2.82%9.93%
EPS CAGR (5Y)-16.62%9.95%
FCF CAGR (5Y)-13.74%15.18%
Total return CAGR (5Y)6.11%3.52%

Frequently asked

Which is better, MCHP or PAYX?
It depends on your goal. value: PAYX (lower P/E); growth: PAYX (faster 5Y revenue CAGR); income: PAYX (higher dividend yield); quality: PAYX (higher ROIC). Across all compared metrics, PAYX leads 13 to 2.
Is MCHP or PAYX cheaper?
On trailing earnings, PAYX is cheaper: MCHP trades at a 305.62 P/E and PAYX at 23.44.
Which has grown faster, MCHP or PAYX?
Over the past five years, PAYX grew revenue faster — MCHP at a -2.82% CAGR versus PAYX at 9.93%.
Does MCHP or PAYX pay a bigger dividend?
MCHP yields 2.25% and PAYX yields 3.87% based on trailing dividends and the latest price.
Is MCHP or PAYX more profitable?
PAYX runs the higher net margin — MCHP at 4.29% versus PAYX at 27.03%.
Which has been the better investment, MCHP or PAYX?
Over the past 10-year, MCHP delivered the higher annualized total return — MCHP at 13.77% versus PAYX at 9.83%. Past performance doesn't predict future results.

Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified July 18, 2026.