Micron Technology (NASDAQ:MU) and Cirrus Logic (NASDAQ:CRUS) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.
Institutional & Insider Ownership
80.4% of Micron Technology shares are held by institutional investors. Comparatively, 84.2% of Cirrus Logic shares are held by institutional investors. 0.2% of Micron Technology shares are held by company insiders. Comparatively, 1.8% of Cirrus Logic shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
Micron Technology has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, Cirrus Logic has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.
Earnings & Valuation
This table compares Micron Technology and Cirrus Logic's 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 | 4.64 | $2.69 billion | $2.55 | 34.87 |
Cirrus Logic | $1.28 billion | 3.52 | $159.50 million | N/A | N/A |
Micron Technology has higher revenue and earnings than Cirrus Logic.
Analyst Recommendations
This is a breakdown of current ratings for Micron Technology and Cirrus Logic, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Micron Technology | 1 | 5 | 27 | 1 | 2.82 |
Cirrus Logic | 0 | 4 | 8 | 0 | 2.67 |
Micron Technology currently has a consensus target price of $95.4063, indicating a potential upside of 7.28%. Cirrus Logic has a consensus target price of $100.00, indicating a potential upside of 28.85%. Given Cirrus Logic's higher possible upside, analysts plainly believe Cirrus Logic is more favorable than Micron Technology.
Profitability
This table compares Micron Technology and Cirrus Logic's 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% |
Cirrus Logic | 12.57% | 14.92% | 11.51% |
Summary
Micron Technology beats Cirrus Logic on 9 of the 14 factors compared between the two stocks.