Micron Technology (NASDAQ:MU) and Maxim Integrated Products (NASDAQ:MXIM) are both large-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.
Analyst Ratings
This is a breakdown of current ratings and target prices for Micron Technology and Maxim Integrated Products, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Micron Technology | 1 | 5 | 28 | 1 | 2.83 |
Maxim Integrated Products | 1 | 11 | 2 | 0 | 2.07 |
Micron Technology currently has a consensus price target of $107.8788, suggesting a potential upside of 27.35%. Maxim Integrated Products has a consensus price target of $75.00, suggesting a potential downside of 19.52%. Given Micron Technology's stronger consensus rating and higher possible upside, equities analysts plainly believe Micron Technology is more favorable than Maxim Integrated Products.
Risk and Volatility
Micron Technology has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500. Comparatively, Maxim Integrated Products has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.
Earnings and Valuation
This table compares Micron Technology and Maxim Integrated Products' top-line 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 | 4.43 | $2.69 billion | $2.55 | 33.22 |
Maxim Integrated Products | $2.19 billion | 11.40 | $654.69 million | $2.26 | 41.23 |
Micron Technology has higher revenue and earnings than Maxim Integrated Products. Micron Technology is trading at a lower price-to-earnings ratio than Maxim Integrated Products, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
80.4% of Micron Technology shares are owned by institutional investors. Comparatively, 86.0% of Maxim Integrated Products shares are owned by institutional investors. 0.2% of Micron Technology shares are owned by company insiders. Comparatively, 0.6% of Maxim Integrated Products shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Micron Technology and Maxim Integrated Products' 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% |
Maxim Integrated Products | 30.03% | 39.85% | 18.51% |
Summary
Micron Technology beats Maxim Integrated Products on 8 of the 15 factors compared between the two stocks.