Silicon Laboratories (NASDAQ:SLAB) and Micron Technology (NASDAQ:MU) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, valuation, analyst recommendations, profitability and earnings.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Silicon Laboratories and Micron Technology, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Silicon Laboratories | 0 | 4 | 7 | 0 | 2.64 |
Micron Technology | 1 | 6 | 27 | 1 | 2.80 |
Silicon Laboratories currently has a consensus target price of $158.20, suggesting a potential upside of 1.58%. Micron Technology has a consensus target price of $89.0909, suggesting a potential downside of 2.66%. Given Silicon Laboratories' higher possible upside, equities analysts clearly believe Silicon Laboratories is more favorable than Micron Technology.
Earnings & Valuation
This table compares Silicon Laboratories and Micron Technology's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Silicon Laboratories | $837.55 million | 8.17 | $19.26 million | $2.15 | 72.44 |
Micron Technology | $21.44 billion | 4.78 | $2.69 billion | $2.55 | 35.89 |
Micron Technology has higher revenue and earnings than Silicon Laboratories. Micron Technology is trading at a lower price-to-earnings ratio than Silicon Laboratories, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
93.0% of Silicon Laboratories shares are held by institutional investors. Comparatively, 80.4% of Micron Technology shares are held by institutional investors. 2.3% of Silicon Laboratories shares are held by insiders. Comparatively, 0.2% of Micron Technology shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Silicon Laboratories and Micron Technology's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Silicon Laboratories | 1.54% | 7.34% | 4.44% |
Micron Technology | 13.59% | 8.46% | 6.22% |
Risk & Volatility
Silicon Laboratories has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Micron Technology has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500.
Summary
Micron Technology beats Silicon Laboratories on 10 of the 15 factors compared between the two stocks.