Head-To-Head Analysis: Cree (CREE) vs. Micron Technology (MU)
Cree (NASDAQ: CREE) and Micron Technology (NASDAQ:MU) are both mid-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.
Valuation and Earnings
This table compares Cree and Micron Technology’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cree||$1.47 billion||1.95||$101.00 million||($1.01)||-29.05|
|Micron Technology||$20.32 billion||2.26||$9.73 billion||$4.32||9.35|
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.
Institutional & Insider Ownership
91.2% of Cree shares are held by institutional investors. Comparatively, 79.3% of Micron Technology shares are held by institutional investors. 1.1% of Cree shares are held by insiders. Comparatively, 0.7% of Micron Technology shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Volatility & Risk
Cree has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Micron Technology has a beta of 1.82, suggesting that its share price is 82% more volatile than the S&P 500.
This table compares Cree and Micron Technology’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and recommmendations for Cree and Micron Technology, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cree currently has a consensus target price of $25.88, indicating a potential downside of 11.81%. Micron Technology has a consensus target price of $45.83, indicating a potential upside of 13.46%. Given Micron Technology’s stronger consensus rating and higher probable upside, analysts plainly believe Micron Technology is more favorable than Cree.
Micron Technology beats Cree on 11 of the 13 factors compared between the two stocks.
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.
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.
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