Microchip Technology Inc. vs McKesson Corporation — how do they compare? Microchip Technology Inc. trades at $78.27 (market cap $43.99B), while McKesson Corporation trades at $859.26 (market cap $102.45B). The key difference: McKesson Corporation is far larger — about 2.3× Microchip Technology Inc.'s market cap, and Microchip Technology Inc. pays the higher dividend (2.25%). Which is the better fit depends on your goals.
| MCHP | MCK | |
|---|---|---|
Market Cap | $43.99B | $102.45B |
Sector | Technology | Health |
52-Week High | $102.97 | $995.69 |
52-Week Low | $49.02 | $671.19 |
Enterprise Value | $49.12B | $108.99B |
Dividend Yield | 2.25% | 0.43% |
Signals from Pluang's Aura AI — not financial advice
Microchip Technology (MCHP) trades at $77.69, down 4.11% on the day, with a neutral technical stance and strong analyst consensus. Recent earnings beats and robust data center growth, including a 98% revenue surge last quarter, highlight operational momentum. The stock's high P/E of 119.15 reflects growth expectations, while cash flow trends show variability, with 2025 net cash flow at $452 million.
Outlook is positive due to expanding AI and data center demand, supported by strategic acquisitions like Hailo. Risks include high valuation sensitivity and debt levels. Wall Street's average price target of $104.00 suggests 34% upside, with no sell ratings among 44 analysts.
McKesson (MCK) trades at $856.69, down 5.0% over the past day, amid a generally positive fundamental backdrop. The stock shows strong technical support near $851-$870 with bullish moving average signals. Recent Q1 2027 earnings beat expectations with EPS of $9.93 versus $9.56 expected, driven by specialty drug and oncology growth, prompting the company to raise full-year guidance. Revenue reached $359.05 billion in 2025 with net income of $3.30 billion, though margins remain thin at 1.12%.
The outlook remains favorable with 80% analyst buy ratings and a consensus price target of $990.67, suggesting 15.6% upside. Key risks include competitive pressures in pharmaceutical distribution and reliance on specialty drug trends. Cash flow trends improved significantly in 2025 with net cash flow of $1.37 billion, supporting dividend payments and operational flexibility.
Trailing returns across standard periods
Latest headlines on both assets
Microchip became an independent company in 1989 when it was spun off from General Instrument. More than half of revenue comes from MCUs, which are used in a wide array of electronic devices from remote controls to garage door openers to power windows in autos. The company's strength lies in lower-end 8-bit MCUs that are suitable for a wider range of less technologically advanced devices, but the firm has expanded its presence in higher-end MCUs and analog chips as well.
Read more on MCHP →McKesson is a leading wholesaler of branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail order), hospitals networks, and healthcare providers. Along with AmerisourceBergen and Cardinal Health, the three account for well over 90% of the U.S. pharmaceutical wholesale industry. McKesson is currently divesting from its pharmaceutical wholesale and distribution in Europe and Canada in order to redeploy capital to strategic growth areas in the U.S. (oncology network and ecosystem, and biopharma services). Additionally, the company supplies medical-surgical products and equipment to healthcare facilities and provides a variety of technology solutions for pharmacies.
Read more on MCK →