Altair Engineering (NASDAQ:ALTR) and Micron Technology (NASDAQ:MU) are both construction companies, but which is the better business? We will compare the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Altair Engineering and Micron Technology, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Altair Engineering | 1 | 2 | 3 | 0 | 2.33 |
Micron Technology | 1 | 6 | 27 | 1 | 2.80 |
Altair Engineering currently has a consensus target price of $51.20, suggesting a potential downside of 16.11%. Micron Technology has a consensus target price of $88.8485, suggesting a potential downside of 2.48%. Given Micron Technology's stronger consensus rating and higher probable upside, analysts plainly believe Micron Technology is more favorable than Altair Engineering.
Institutional and Insider Ownership
54.4% of Altair Engineering shares are owned by institutional investors. Comparatively, 80.4% of Micron Technology shares are owned by institutional investors. 29.3% of Altair Engineering shares are owned by insiders. Comparatively, 0.2% of Micron Technology shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Altair Engineering and Micron Technology's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Altair Engineering | $458.92 million | 9.79 | $-7,540,000.00 | $0.22 | 277.32 |
Micron Technology | $21.44 billion | 4.75 | $2.69 billion | $2.55 | 35.73 |
Micron Technology has higher revenue and earnings than Altair Engineering. Micron Technology is trading at a lower price-to-earnings ratio than Altair Engineering, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Altair Engineering has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500. Comparatively, Micron Technology has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500.
Profitability
This table compares Altair Engineering and Micron Technology's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Altair Engineering | -3.08% | 1.10% | 0.52% |
Micron Technology | 13.59% | 8.46% | 6.22% |
Summary
Micron Technology beats Altair Engineering on 12 of the 15 factors compared between the two stocks.