Sigma Designs (OTCMKTS:SIGM) and Micron Technology (NASDAQ:MU) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, valuation, profitability, analyst recommendations, dividends, earnings and institutional ownership.
Risk and Volatility
Sigma Designs has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500. Comparatively, Micron Technology has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500.
Profitability
This table compares Sigma Designs and Micron Technology's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Sigma Designs | N/A | N/A | N/A |
Micron Technology | 13.59% | 8.46% | 6.22% |
Earnings and Valuation
This table compares Sigma Designs and Micron Technology's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Sigma Designs | $65.90 million | N/A | $-120,040,000.00 | N/A | N/A |
Micron Technology | $21.44 billion | 4.74 | $2.69 billion | $2.55 | 35.55 |
Micron Technology has higher revenue and earnings than Sigma Designs.
Analyst Recommendations
This is a summary of current ratings and price targets for Sigma Designs and Micron Technology, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Sigma Designs | 0 | 0 | 0 | 0 | N/A |
Micron Technology | 1 | 5 | 28 | 1 | 2.83 |
Micron Technology has a consensus price target of $107.8788, indicating a potential upside of 18.99%. Given Micron Technology's higher probable upside, analysts clearly believe Micron Technology is more favorable than Sigma Designs.
Insider & Institutional Ownership
80.4% of Micron Technology shares are held by institutional investors. 4.5% of Sigma Designs shares are held by company insiders. Comparatively, 0.2% of Micron Technology shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Micron Technology beats Sigma Designs on 10 of the 11 factors compared between the two stocks.