First Solar (NASDAQ:FSLR) and Micron Technology (NASDAQ:MU) are both oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.
Profitability
This table compares First Solar and Micron Technology's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
First Solar | 6.38% | 9.49% | 6.95% |
Micron Technology | 13.59% | 8.46% | 6.22% |
Analyst Ratings
This is a breakdown of recent ratings and target prices for First Solar and Micron Technology, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
First Solar | 7 | 7 | 3 | 0 | 1.76 |
Micron Technology | 1 | 6 | 27 | 1 | 2.80 |
First Solar currently has a consensus price target of $92.6250, indicating a potential upside of 9.11%. Micron Technology has a consensus price target of $90.2727, indicating a potential downside of 4.74%. Given First Solar's higher possible upside, analysts clearly believe First Solar is more favorable than Micron Technology.
Volatility & Risk
First Solar has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500. Comparatively, Micron Technology has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500.
Earnings & Valuation
This table compares First Solar 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 |
---|
First Solar | $3.06 billion | 2.94 | $-114,930,000.00 | $1.48 | 57.36 |
Micron Technology | $21.44 billion | 4.95 | $2.69 billion | $2.55 | 37.16 |
Micron Technology has higher revenue and earnings than First Solar. Micron Technology is trading at a lower price-to-earnings ratio than First Solar, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
67.7% of First Solar shares are owned by institutional investors. Comparatively, 80.4% of Micron Technology shares are owned by institutional investors. 0.5% of First Solar shares are owned by company insiders. Comparatively, 0.2% of Micron Technology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Micron Technology beats First Solar on 10 of the 15 factors compared between the two stocks.