Critical Survey: Navitas Semiconductor (NASDAQ:NVTS) and Micron Technology (NASDAQ:MU)

Micron Technology (NASDAQ:MU) and Navitas Semiconductor (NASDAQ:NVTS) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, earnings, institutional ownership, profitability and dividends.

Profitability

This table compares Micron Technology and Navitas Semiconductor’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%
Navitas Semiconductor	-856.85%	-13.13%	-11.91%

Analyst Ratings

This is a breakdown of current recommendations for Micron Technology and Navitas Semiconductor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Micron Technology	0	3	31	4	3.03
Navitas Semiconductor	2	2	2	0	2.00

Micron Technology presently has a consensus target price of $1,295.63, indicating a potential upside of 18.20%. Navitas Semiconductor has a consensus target price of $15.92, indicating a potential upside of 27.77%. Given Navitas Semiconductor’s higher probable upside, analysts clearly believe Navitas Semiconductor is more favorable than Micron Technology.

Volatility & Risk

Micron Technology has a beta of 2.22, suggesting that its share price is 122% more volatile than the S&P 500. Comparatively, Navitas Semiconductor has a beta of 3.88, suggesting that its share price is 288% more volatile than the S&P 500.

Insider and Institutional Ownership

80.8% of Micron Technology shares are held by institutional investors. Comparatively, 46.1% of Navitas Semiconductor shares are held by institutional investors. 0.2% of Micron Technology shares are held by company insiders. Comparatively, 12.4% of Navitas Semiconductor 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.

Valuation and Earnings

This table compares Micron Technology and Navitas Semiconductor”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Micron Technology	$37.38 billion	33.12	$8.54 billion	$44.17	24.82
Navitas Semiconductor	$45.92 million	70.84	-$116.95 million	($1.33)	-9.37

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

Summary

Micron Technology beats Navitas Semiconductor on 11 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 Navitas Semiconductor

Navitas Semiconductor Corporation designs, develops, and markets gallium nitride power integrated circuits, silicon carbide, associated high-speed silicon system controllers, and digital isolators used in power conversion and charging. The company’s products are used in mobile, consumer, data center, solar, electric vehicle, industrial motor drive, smart grid, and transportation applications. It operates in the United States, Europe, China, rest of Asia, and internationally. The company was founded in 2013 and is based in Torrance, California.