Micron Technology (NASDAQ:MU) and Smart Global (NASDAQ:SGH) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Micron Technology and Smart Global, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Micron Technology 4 11 17 2.41
Smart Global 5 3.00

Micron Technology currently has a consensus price target of $46.77, indicating a potential upside of 2.74%. Smart Global has a consensus price target of $37.60, indicating a potential upside of 20.94%. Given Smart Global’s stronger consensus rating and higher probable upside, analysts clearly believe Smart Global is more favorable than Micron Technology.

Risk & Volatility

Micron Technology has a beta of 1.97, meaning that its stock price is 97% more volatile than the S&P 500. Comparatively, Smart Global has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Micron Technology 37.35% 30.94% 23.75%
Smart Global 5.77% 40.99% 12.89%

Valuation & Earnings

This table compares Micron Technology and Smart Global’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Micron Technology $30.39 billion 1.65 $14.14 billion $11.82 3.85
Smart Global $1.29 billion 0.56 $119.46 million $6.00 5.18

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

Institutional & Insider Ownership

77.2% of Micron Technology shares are held by institutional investors. Comparatively, 97.2% of Smart Global shares are held by institutional investors. 0.2% of Micron Technology shares are held by company insiders. Comparatively, 4.2% of Smart Global shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Micron Technology beats Smart Global on 8 of the 14 factors compared between the two stocks.

Micron Technology Company Profile

Micron Technology, Inc. engages in the provision of innovative memory and storage solutions. It operates through the following segments: Compute and Networking Business Unit (CNBU); Mobile Business Unit (MBU); Storage Business Unit (SBU); and Embedded Business Unit (EBU). The Compute and Networking Business Unit segment includes memory products sold into cloud server, enterprise, client, graphics, and networking markets. The Mobile Business Unit segment offers memory products sold into smartphone, and other mobile-device markets. The Storage Business Unit segment comprises of SSDs and component-level solutions sold into enterprise and cloud, client, and consumer solid-state drive (SSD) markets, other discrete storage products sold in component and wafer forms to the removable storage markets, and sales of 3D XPoint memory. The Embedded Business Unit segment consists of memory and storage products sold into automotive, industrial, and consumer markets. The company was founded by Ward D. Parkinson, Joseph L. Parkinson, Dennis Wilson, and Doug Pitman in October 1978 and is headquartered in Boise, ID.

Smart Global Company Profile

SMART Global Holdings, Inc. designs, manufactures, and supplies specialty memory solutions worldwide. The company offers dynamic random access memory (DRAM) components, which are used to manufacture modules and other products; DRAM modules for desktop, notebook, and server applications, as well as for use in smartphones; and specialty DRAM modules for industrial, communications, and networking applications, as well as develops specialized memory module designs based on original equipment manufacturer (OEM) requirements. It also provides flash memory, USB, and serial advanced technology attachment products primarily for use in communications equipment, printers, servers and storage products, switches, and routers; and aerospace, automotive, and defense industries, as well as industrial applications. In addition, the company provides networking, storage, and compute solutions, as well as HPC software to manage and use on premise and cloud computing clusters. Further, it offers supply chain services, including procurement, logistics, inventory management, temporary warehousing, programming, kitting, and packaging. SMART Global Holdings, Inc. sells its products to OEMs through direct sales force and independent sales representatives in North America, Latin America, Asia, and Europe. The company was formerly known as Saleen Holdings, Inc. and changed its name to SMART Global Holdings, Inc. in August 2014. SMART Global Holdings, Inc. was founded in 1988 and is headquartered in Newark, California.



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