Contrasting Micron Technology (MU) and Cree (CREE)

Micron Technology (NASDAQ: MU) and Cree (NASDAQ:CREE) are both mid-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.

Valuation and Earnings

This table compares Micron Technology and Cree’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Micron Technology $20.32 billion 2.21 $9.73 billion $4.32 9.39
Cree $1.47 billion 1.94 $101.00 million ($1.01) -28.92

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

Volatility and Risk

Micron Technology has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500. Comparatively, Cree has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Micron Technology and Cree, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Micron Technology 1 3 28 0 2.84
Cree 3 9 2 0 1.93

Micron Technology currently has a consensus price target of $45.52, suggesting a potential upside of 12.17%. Cree has a consensus price target of $23.88, suggesting a potential downside of 18.26%. Given Micron Technology’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Micron Technology is more favorable than Cree.

Profitability

This table compares Micron Technology and Cree’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Micron Technology 25.04% 32.09% 16.15%
Cree -7.17% -0.13% -0.11%

Insider & Institutional Ownership

79.3% of Micron Technology shares are owned by institutional investors. Comparatively, 91.4% of Cree shares are owned by institutional investors. 0.7% of Micron Technology shares are owned by insiders. Comparatively, 1.1% of Cree 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.

Summary

Micron Technology beats Cree on 11 of the 13 factors compared between the two stocks.

Micron Technology Company Profile

Micron Technology, Inc. is engaged in semiconductor systems. The Company’s portfolio of memory technologies, including dynamic random-access memory (DRAM), negative-AND (NAND) Flash and NOR Flash are the basis for solid-state drives, modules, multi-chip packages and other system solutions. Its business segments include Compute and Networking Business Unit (CNBU), which includes memory products sold into compute, networking, graphics and cloud server markets; Mobile Business Unit (MBU), which includes memory products sold into smartphone, tablet and other mobile-device markets; Storage Business Unit (SBU), which includes memory products sold into enterprise, client, cloud and removable storage markets, and SBU also includes products sold to Intel through its Intel/Micron Flash Technology (IMFT) joint venture, and Embedded Business Unit (EBU), which includes memory products sold into automotive, industrial, connected home and consumer electronics markets.

Cree Company Profile

Cree, Inc. is a manufacturer of lighting-class light emitting diode (LED) products, lighting products and semiconductor products for power and radio-frequency (RF) applications. The Company’s products are focused for applications, such as indoor and outdoor lighting, video displays, transportation, electronic signs and signals, power supplies, inverters and wireless systems. The Company has three segments: Lighting Products, LED Products, and Power and RF Products. The Company’s Lighting Products segment offers LED lighting systems and bulbs. The Company’s LED Products segment offers LED components, LED chips and silicon carbide (SiC) materials. The Company’s Power and RF Products segment offers power devices and RF devices. The Company designs, manufactures and markets lighting systems for indoor and outdoor applications, with a focus on LED lighting systems for the commercial, industrial and consumer markets.

Receive News & Ratings for Micron Technology Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Micron Technology Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply