Micron Technology (NASDAQ:MU) and Advanced Micro Devices (NASDAQ:AMD) are both large-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.
Risk & Volatility
Micron Technology has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500. Comparatively, Advanced Micro Devices has a beta of 2.29, indicating that its share price is 129% more volatile than the S&P 500.
Valuation & Earnings
This table compares Micron Technology and Advanced Micro Devices' revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Micron Technology | $21.44 billion | 4.21 | $2.69 billion | $2.55 | 31.65 |
Advanced Micro Devices | $6.73 billion | 15.76 | $341 million | $0.48 | 183.77 |
Micron Technology has higher revenue and earnings than Advanced Micro Devices. Micron Technology is trading at a lower price-to-earnings ratio than Advanced Micro Devices, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Micron Technology and Advanced Micro Devices, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Micron Technology | 1 | 6 | 25 | 1 | 2.79 |
Advanced Micro Devices | 2 | 8 | 25 | 0 | 2.66 |
Micron Technology currently has a consensus price target of $84.7419, suggesting a potential upside of 4.98%. Advanced Micro Devices has a consensus price target of $82.0938, suggesting a potential downside of 6.93%. Given Micron Technology's stronger consensus rating and higher probable upside, equities research analysts clearly believe Micron Technology is more favorable than Advanced Micro Devices.
Institutional & Insider Ownership
80.4% of Micron Technology shares are held by institutional investors. Comparatively, 67.0% of Advanced Micro Devices shares are held by institutional investors. 0.2% of Micron Technology shares are held by insiders. Comparatively, 1.5% of Advanced Micro Devices shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Micron Technology and Advanced Micro Devices' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Micron Technology | 13.59% | 8.46% | 6.22% |
Advanced Micro Devices | 10.17% | 33.04% | 16.89% |
Summary
Micron Technology beats Advanced Micro Devices on 8 of the 14 factors compared between the two stocks.