Head-To-Head Analysis: Micron Technology (NASDAQ:MU) and Cirrus Logic (NASDAQ:CRUS)

Micron Technology (NASDAQ:MU) and Cirrus Logic (NASDAQ:CRUS) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.

Insider & Institutional Ownership

80.8% of Micron Technology shares are owned by institutional investors. Comparatively, 88.0% of Cirrus Logic shares are owned by institutional investors. 0.2% of Micron Technology shares are owned by insiders. Comparatively, 1.2% of Cirrus Logic shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Micron Technology and Cirrus Logic, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Micron Technology	0	3	31	4	3.03
Cirrus Logic	1	3	5	0	2.44

Micron Technology presently has a consensus price target of $1,295.63, suggesting a potential upside of 36.14%. Cirrus Logic has a consensus price target of $150.71, suggesting a potential upside of 33.25%. Given Micron Technology’s stronger consensus rating and higher probable upside, equities analysts clearly believe Micron Technology is more favorable than Cirrus Logic.

Risk and Volatility

Micron Technology has a beta of 2.22, suggesting that its stock price is 122% more volatile than the S&P 500. Comparatively, Cirrus Logic has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500.

Earnings and Valuation

This table compares Micron Technology and Cirrus Logic”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Micron Technology	$90.27 billion	11.91	$8.54 billion	$44.17	21.55
Cirrus Logic	$2.00 billion	2.84	$414.41 million	$8.17	13.84

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Micron Technology	55.91%	71.13%	50.33%
Cirrus Logic	21.00%	20.61%	17.56%

Summary

Micron Technology beats Cirrus Logic on 13 of the 15 factors compared between the two stocks.

About Micron Technology

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.

About Cirrus Logic

Cirrus Logic, Inc., a fabless semiconductor company, develops low-power high-precision mixed-signal processing solutions in China, the United States, and internationally. The company offers audio products, including amplifiers; codecs components that integrate analog-to-digital converters (ADCs) and digital-to-analog converters (DACs) into a single integrated circuit (IC); smart codecs, a codec with integrated digital signal processing; standalone digital signal processors; and SoundClear technology, which consists of a portfolio of tools, software, and algorithms that helps to enhance user experience with features, such as louder, high-fidelity sound, audio playback, voice capture, and hearing augmentation for use in smartphones, tablets, laptops, AR/VR headsets, home theater systems, automotive entertainment systems, and professional audio systems. It also provides high-performance mixed-signal products comprising camera controllers, haptic and sensing solutions, and battery and power ICs for use in smartphones, as well as legacy industrial and energy applications, such as digital utility meters, power supplies, energy control, energy measurement, and energy exploration. The company markets and sells its products through direct sales force, external sales representatives, and distributors. Cirrus Logic, Inc. was incorporated in 1984 and is headquartered in Austin, Texas.