Super Micro Computer (NASDAQ:SMCI) and Lumentum (NASDAQ:LITE) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.
Analyst Ratings
This is a breakdown of current ratings and target prices for Super Micro Computer and Lumentum, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Super Micro Computer | 0 | 0 | 3 | 0 | 3.00 |
Lumentum | 0 | 1 | 17 | 0 | 2.94 |
Super Micro Computer currently has a consensus price target of $36.50, indicating a potential upside of 7.10%. Lumentum has a consensus price target of $113.50, indicating a potential upside of 27.69%. Given Lumentum's higher possible upside, analysts clearly believe Lumentum is more favorable than Super Micro Computer.
Risk & Volatility
Super Micro Computer has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, Lumentum has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.
Institutional & Insider Ownership
75.2% of Super Micro Computer shares are held by institutional investors. Comparatively, 89.8% of Lumentum shares are held by institutional investors. 16.7% of Super Micro Computer shares are held by insiders. Comparatively, 0.3% of Lumentum shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Super Micro Computer and Lumentum's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Super Micro Computer | 2.56% | 12.14% | 6.76% |
Lumentum | 9.22% | 21.41% | 11.35% |
Earnings and Valuation
This table compares Super Micro Computer and Lumentum's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Super Micro Computer | $3.34 billion | 0.52 | $84.31 million | $2.46 | 13.85 |
Lumentum | $1.68 billion | 4.01 | $135.50 million | $4.48 | 19.84 |
Lumentum has lower revenue, but higher earnings than Super Micro Computer. Super Micro Computer is trading at a lower price-to-earnings ratio than Lumentum, indicating that it is currently the more affordable of the two stocks.
Summary
Lumentum beats Super Micro Computer on 10 of the 14 factors compared between the two stocks.