Micron Technology (MU) Competitors

Micron Technology (NASDAQ:MU) and Applied Materials (NASDAQ:AMAT) are both large-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, media sentiment, institutional ownership and risk.

Is MU or AMAT a better dividend stock?

Micron Technology pays an annual dividend of $0.46 per share and has a dividend yield of 0.3%. Applied Materials pays an annual dividend of $1.84 per share and has a dividend yield of 0.9%. Micron Technology pays out 8.3% of its earnings in the form of a dividend. Applied Materials pays out 21.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Applied Materials has raised its dividend for 8 consecutive years. Applied Materials is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Do insiders & institutionals believe in MU or AMAT?

80.8% of Micron Technology shares are owned by institutional investors. Comparatively, 80.6% of Applied Materials shares are owned by institutional investors. 0.3% of Micron Technology shares are owned by insiders. Comparatively, 0.2% of Applied Materials shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Do analysts recommend MU or AMAT?

Micron Technology presently has a consensus target price of $165.54, suggesting a potential upside of 0.56%. Applied Materials has a consensus target price of $194.35, suggesting a potential downside of 3.08%. Given Micron Technology's stronger consensus rating and higher possible upside, analysts clearly believe Micron Technology is more favorable than Applied Materials.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Micron Technology	0 Sell rating(s)	5 Hold rating(s)	22 Buy rating(s)	2 Strong Buy rating(s)	2.90
Applied Materials	1 Sell rating(s)	12 Hold rating(s)	17 Buy rating(s)	0 Strong Buy rating(s)	2.53

Which has preferable earnings & valuation, MU or AMAT?

Applied Materials has higher revenue and earnings than Micron Technology. Applied Materials is trading at a lower price-to-earnings ratio than Micron Technology, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Micron Technology	$25.11B	7.34	$778M	$5.55	29.66
Applied Materials	$27.18B	5.88	$7.18B	$8.39	23.90

Which has more risk & volatility, MU or AMAT?

Micron Technology has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, Applied Materials has a beta of 1.77, indicating that its share price is 77% more volatile than the S&P 500.

Is MU or AMAT more profitable?

Applied Materials has a net margin of 23.88% compared to Micron Technology's net margin of 18.41%. Applied Materials' return on equity of 40.96% beat Micron Technology's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Micron Technology	18.41%	13.60%	8.90%
Applied Materials	23.88%	40.96%	22.99%

Does the media prefer MU or AMAT?

In the previous week, Micron Technology had 71 more articles in the media than Applied Materials. MarketBeat recorded 135 mentions for Micron Technology and 64 mentions for Applied Materials. Applied Materials' average media sentiment score of 1.35 beat Micron Technology's score of 0.96 indicating that Applied Materials is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Micron Technology	80 Very Positive mention(s)	9 Positive mention(s)	29 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
Applied Materials	54 Very Positive mention(s)	2 Positive mention(s)	7 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Summary

Micron Technology and Applied Materials tied by winning 10 of the 20 factors compared between the two stocks.