Critical Contrast: Sigma Designs (OTCMKTS:SIGM) & Micron Technology (NASDAQ:MU)

Micron Technology (NASDAQ:MU) and Sigma Designs (OTCMKTS:SIGM) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.

Earnings and Valuation

This table compares Micron Technology and Sigma Designs’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Micron Technology	$15.54 billion	10.14	-$5.83 billion	($3.45)	-41.26
Sigma Designs	$65.90 million	N/A	-$120.04 million	N/A	N/A

Sigma Designs has lower revenue, but higher earnings than Micron Technology.

Analyst Ratings

This is a breakdown of current ratings for Micron Technology and Sigma Designs, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Micron Technology	0	1	25	0	2.96
Sigma Designs	0	0	0	0	N/A

Micron Technology presently has a consensus target price of $153.00, indicating a potential upside of 7.47%. Given Micron Technology’s higher probable upside, equities research analysts clearly believe Micron Technology is more favorable than Sigma Designs.

Profitability

This table compares Micron Technology and Sigma Designs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Micron Technology	-20.57%	-8.98%	-6.10%
Sigma Designs	N/A	N/A	N/A

Volatility and Risk

Micron Technology has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, Sigma Designs has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.

Insider & Institutional Ownership

80.8% of Micron Technology shares are held by institutional investors. 0.3% of Micron Technology shares are held by insiders. Comparatively, 4.5% of Sigma Designs shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

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 Sigma Designs

Sigma Designs, Inc., an integrated system-on-chip solutions provider, provides intelligent platforms for use in the home entertainment, and home and industrial control appliances. The company offers mobile Internet of Things solutions used primarily for tracking applications, such as small tags that can be attached to track pets, keys, children, luggage, and vehicles. It also offers legacy products; and software development kits and engineering support services for hardware and software. The company markets and sells its products through direct sales force, manufacturer representatives, distributors, and resellers to end-product manufacturers, original equipment manufacturers, and original design manufacturers in Asia, North America, Europe, and internationally. Sigma Designs, Inc. was founded in 1982 and is headquartered in Fremont, California.