Microchip Technology Incorporated (MCHP) vs TE Connectivity Ltd. (TEL)

TEL leads on 14 of 16 compared metrics.

A side-by-side comparison of Microchip Technology Incorporated and TE Connectivity Ltd. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 20, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).

Compare

Total return — MCHP vs TEL

growth of $100 · last 19y
MCHP +382.9%TEL +460.2%TEL compounded faster
0200400600Start $1002011201520192023$483$560
MCHP TEL

MCHP vs TEL: by the numbers

  • TEL is the larger company ($63.53B vs $54.08B market cap).
  • TEL trades at the lower earnings multiple (22.23 vs 376.63 P/E).
  • TEL converts more revenue to profit (15.69% vs 4.29% net margin).
  • TEL grew revenue faster over the past five years (7.22% vs -2.82% CAGR).
  • MCHP pays the higher dividend yield (1.82% vs 1.34%).

Which is better, MCHP or TEL?

Metric tally: MCHP 2 · TEL 14

It depends on what you're optimizing for:

ValueTEL(lower P/E)
GrowthTEL(faster 5Y revenue CAGR)
IncomeMCHP(higher dividend yield)
QualityTEL(higher ROIC)

Metrics side by side

Valuation

MetricMCHPTEL
P/E ratio376.6322.23
Forward P/E19.39
P/S ratio11.603.47
P/B ratio8.504.85
PEG ratio519.4816.11
EV / EBITDA42.8114.60
FCF yield1.59%5.28%

Profitability

MetricMCHPTEL
Gross margin57.73%35.36%
Operating margin10.40%19.28%
Net margin4.29%15.69%
ROE3.14%21.96%
ROIC3.11%8.82%

Dividends

MetricMCHPTEL
Dividend yield1.82%1.34%
Payout ratio674.07%46.94%

Growth (annualized)

MetricMCHPTEL
Revenue CAGR (5Y)-2.82%7.22%
EPS CAGR (5Y)-16.62%1.38%
FCF CAGR (5Y)-13.74%13.69%
Total return CAGR (5Y)8.78%12.80%

Frequently asked

Which is better, MCHP or TEL?
It depends on your goal. value: TEL (lower P/E); growth: TEL (faster 5Y revenue CAGR); income: MCHP (higher dividend yield); quality: TEL (higher ROIC). Across all compared metrics, TEL leads 14 to 2.
Is MCHP or TEL cheaper?
On trailing earnings, TEL is cheaper: MCHP trades at a 376.63 P/E and TEL at 22.23.
Which has grown faster, MCHP or TEL?
Over the past five years, TEL grew revenue faster — MCHP at a -2.82% CAGR versus TEL at 7.22%.
Does MCHP or TEL pay a bigger dividend?
MCHP yields 1.82% and TEL yields 1.34% based on trailing dividends and the latest price.
Is MCHP or TEL more profitable?
TEL runs the higher net margin — MCHP at 4.29% versus TEL at 15.69%.
Which has been the better investment, MCHP or TEL?
Over the past 10-year, MCHP delivered the higher annualized total return — MCHP at 16.74% versus TEL at 15.69%. 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 June 20, 2026.