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Compare Stocks › MCHP vs PFE

Microchip Technology Incorporated (MCHP) vs Pfizer Inc. (PFE)

MCHP
Microchip Technology Incorporated
$93.95
VS
PFE
Pfizer Inc.
$26.33

Rewards

MCHP
  • ★Dividend yield of 1.94% with a consistent or growing payout over the past 4 years.
  • ★Altman Z-Score of 3.52 indicates very low bankruptcy risk — the company is firmly in the safe zone.
PFE
  • ★Gross margin of 75.8% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Dividend yield of 6.53% with a consistent or growing payout over the past 4 years.
  • ★FCF yield of 9.0% is historically attractive — the business generates significant cash relative to its price.

Risks

MCHP
  • ⚠ROIC has declined by 8.6 percentage points over the observed period, which may signal competitive erosion.
  • ⚠FCF yield of 2.0% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
  • ⚠Net debt/EBITDA of 5.3x indicates heavy leverage — it would take over 4 years of EBITDA to pay off net debt.
PFE
  • ⚠ROIC has declined by 13.9 percentage points over the observed period, which may signal competitive erosion.
  • ⚠PEG ratio of 13.77 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
  • ⚠Free cash flow has declined at a 29.6% CAGR over the past 4 years — a concerning trend.

Key Valuation Metrics

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MCHP
PFE
Valuation
$996.41M
Free Cash Flow
$13.43B
1.96%
FCF Yield
8.97%
N/A
Trailing P/E
19.36
35.29
Forward P/E
9.36
Quality & Moat
3.81%
ROIC
7.67%
-0.04%
ROE
8.96%
55.41%
Gross Margin
75.81%
1.17
PEG Ratio
13.77
Balance Sheet Safety
0.82
Debt / Equity
0.78
N/A
Interest Coverage
N/A
5.26
Net Debt / EBITDA
2.10
1.94%
Dividend Yield
6.53%
MCHP: 1Ties: 1PFE: 9
MCHPPFE

Historical Fundamentals

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MCHP

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

PFE

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

$1 Retained Earnings Test

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MCHP
$-2.96
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$1.56B
Δ Market Cap
$-4.63B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
PFE
N/A
Net losses over 3 years — test not applicable
Company had negative cumulative retained earnings
Σ Retained
$-10.61B
Δ Market Cap
$-146.18B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Discounted Cash Flow (DCF) Analysis

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MCHP
24.4% Margin of Safety
Price is 24.4% below estimated fair value
Current Price: $93.95
Fair Value: $124.35
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
PFE
130.7% Overvalued
Price is 130.7% above estimated fair value
Current Price: $26.33
Fair Value: $11.41
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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MCHP

What growth rate is the market pricing in at $94?

+21.8%
Market-Implied FCF Growth Rate

Market pricing in significantly higher growth than history — aggressive.

PFE

What growth rate is the market pricing in at $26?

+11.4%
Market-Implied Owner Earnings Growth
Standard FCF implies +4.0%

The market implies +11.4% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +4.0%, reflecting heavy growth investment.

Economic Moat Score

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MCHP
39/100
No Moat
70+ Wide · 40-69 Narrow · <40 None

No durable moat detected, though reinvestment efficiency shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
PFE
35/100
No Moat
70+ Wide · 40-69 Narrow · <40 None

No durable moat detected, though reinvestment efficiency shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 5 years of fundamental data.

Forensic Accounting

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MCHP
-3.07
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
PFE
-2.53
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Ownership Breakdown

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MCHP
Insiders 2.1%Institutions 99.5%
No. of Institutional Holders1,572
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
PFE
Insiders 0.1%Institutions 67.9%Retail & Other 32.0%
No. of Institutional Holders3,687
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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MCHP
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises
PFE
0
Buys (3M)
0
Buys (12M)
BLAYLOCK RONALD E
Director
$499,072
@ $25.65 · 2025-02-13
GOTTLIEB SCOTT
Director
$28,240
@ $28.24 · 2024-10-30
Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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MCHP
2
Sells (3M)
4
Sells (12M)
Total value (12M): $1.84M
KRAWCZYK JOSEPH R. II
Officer
$345,743
@ $78.58 · 2026-02-12
BUNKER MATHEW B.
Officer
$783,700
@ $78.37 · 2026-02-12
CHAPMAN MATTHEW W
Director
$682,550
@ $68.25 · 2025-08-25
JOHNSON KARLTON D
Director
$29,981
@ $60.69 · 2025-05-20
CHAPMAN MATTHEW W
Director
$257,982
@ $93.88 · 2024-06-10
JOHNSON KARLTON D
Director
$22,019
@ $97.00 · 2024-05-31
DREHOBL STEPHEN V
Officer
$744,320
@ $95.06 · 2024-05-16
DREHOBL STEPHEN V
Officer
$908,800
@ $90.88 · 2024-05-08
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
PFE
0
Sells (3M)
0
Sells (12M)
DAMICO JENNIFER B.
Officer
$64,825
@ $25.93 · 2025-03-04
DAMICO JENNIFER B.
Officer
$147,714
@ $28.66 · 2024-08-13
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

🎭 Mr. Market's Mood

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MCHP
FearGreed
😏Greed(68/100)

"Market is optimistic — be cautious and ensure you have a margin of safety"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
PFE
FearGreed
😐Neutral(54/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

⚖️ Buffett Signal

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MCHP
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Greed (68)
PFE
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (54)
View MCHP Full AnalysisView PFE Full Analysis
MCHP vs PFE: Which Is the Better Buy? | SafetyMargin.io