Comparing Micron Technology (MU) & Its Peers

Micron Technology (NASDAQ:MU) is one of 221 public companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it compare to its rivals? We will compare Micron Technology to similar companies based on the strength of its valuation, dividends, earnings, analyst recommendations, institutional ownership, profitability and risk.

Volatility & Risk

Micron Technology has a beta of 2.36, suggesting that its share price is 136% more volatile than the S&P 500. Comparatively, Micron Technology’s rivals have a beta of 2.80, suggesting that their average share price is 180% more volatile than the S&P 500.

Institutional & Insider Ownership

80.8% of Micron Technology shares are owned by institutional investors. Comparatively, 54.6% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by institutional investors. 0.2% of Micron Technology shares are owned by company insiders. Comparatively, 11.9% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by company 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 Micron Technology and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Micron Technology	63.80%	92.62%	66.29%
Micron Technology Competitors	-1,278.97%	-126.37%	-3.98%

Dividends

Micron Technology pays an annual dividend of $0.60 per share and has a dividend yield of 0.1%. Micron Technology pays out 0.8% of its earnings in the form of a dividend. As a group, “Semiconductors & Semiconductor Equipment” companies pay a dividend yield of 1.0% and pay out 28.8% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and recommmendations for Micron Technology and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Micron Technology	0	4	41	1	2.93
Micron Technology Competitors	3503	12355	25780	999	2.57

Micron Technology presently has a consensus target price of $1,407.88, suggesting a potential upside of 104.04%. As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 51.88%. Given Micron Technology’s stronger consensus rating and higher probable upside, research analysts plainly believe Micron Technology is more favorable than its rivals.

Earnings & Valuation

This table compares Micron Technology and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Micron Technology	$133.19 billion	$84.97 billion	9.30
Micron Technology Competitors	$39.41 billion	$2.48 billion	8.71

Micron Technology has higher revenue and earnings than its rivals. Micron Technology is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Micron Technology beats its rivals on 11 of the 15 factors compared.

Micron Technology Company Profile

Micron Technology, Inc. designs, develops, manufactures, and sells memory and storage products worldwide. The company operates through four segments: Compute and Networking Business Unit, Mobile Business Unit, Embedded Business Unit, and Storage Business Unit. It provides memory and storage technologies comprising dynamic random access memory semiconductor devices with low latency that provide high-speed data retrieval; non-volatile and re-writeable semiconductor storage devices; and non-volatile re-writable semiconductor memory devices that provide fast read speeds under the Micron and Crucial brands, as well as through private labels. The company offers memory products for the cloud server, enterprise, client, graphics, networking, industrial, and automotive markets, as well as for smartphone and other mobile-device markets; SSDs and component-level solutions for the enterprise and cloud, client, and consumer storage markets; discrete storage products in component and wafers; and memory and storage products for the automotive, industrial, and consumer markets. It markets its products through its direct sales force, independent sales representatives, distributors, and retailers; and web-based customer direct sales channel, as well as through channel and distribution partners. Micron Technology, Inc. was founded in 1978 and is headquartered in Boise, Idaho.