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

Profitability

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

Net Margins Return on Equity Return on Assets
Microsemi Corporation 6.90% 19.91% 8.20%
Micron Technology 25.04% 32.09% 16.15%

Analyst Ratings

This is a summary of current ratings and recommmendations for Microsemi Corporation and Micron Technology, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Microsemi Corporation 0 2 12 0 2.86
Micron Technology 1 3 28 0 2.84

Microsemi Corporation presently has a consensus target price of $58.36, suggesting a potential upside of 13.09%. Micron Technology has a consensus target price of $45.83, suggesting a potential upside of 10.43%. Given Microsemi Corporation’s stronger consensus rating and higher probable upside, research analysts plainly believe Microsemi Corporation is more favorable than Micron Technology.

Risk and Volatility

Microsemi Corporation has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, Micron Technology has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Microsemi Corporation $1.79 billion 3.34 $550.50 million $1.06 48.69
Micron Technology $20.32 billion 2.33 $9.73 billion $4.32 9.61

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

Institutional and Insider Ownership

98.3% of Microsemi Corporation shares are held by institutional investors. Comparatively, 79.3% of Micron Technology shares are held by institutional investors. 0.6% of Microsemi Corporation shares are held by insiders. Comparatively, 0.7% of Micron Technology shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Micron Technology beats Microsemi Corporation on 9 of the 14 factors compared between the two stocks.

Microsemi Corporation Company Profile

Microsemi Corporation is a designer, manufacturer and marketer of analog and mixed-signal semiconductor solutions differentiated by power, security, reliability and performance. The Company offers a portfolio of semiconductor and system solutions for aerospace and defense, communications, data center and industrial markets. Its products include high-performance and radiation-hardened analog mixed-signal integrated circuits (ICs), field programmable gate arrays (FPGAs), system on chip solutions (SoCs) and application-specific integrated circuits (ASICs) and power management products. The Company’s marketed products include Switchtec PFX PCIe switch, Flashtec NVM Express (NVMe)2032 and NVMe2016 controllers, Flashtec NVM Express (NVMe)2108 eight channel and NVMe2104 four channel controllers, PDS-EM-8100 PoE 2.5 gigabits per second (Gbps) Multiplexer, Chip Scale Atomic Clock (CSAC) components and miTimePLL.

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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