Contrasting SiTime (NASDAQ:SITM) and Micron Technology (NASDAQ:MU)

SiTime (NASDAQ:SITMGet Free Report) and Micron Technology (NASDAQ:MUGet Free Report) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
SiTime -53.55% -9.89% -7.56%
Micron Technology 3.10% 1.58% 1.05%

Analyst Ratings

This is a summary of current ratings and price targets for SiTime and Micron Technology, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SiTime 1 0 3 0 2.50
Micron Technology 1 1 26 0 2.89

SiTime currently has a consensus target price of $196.25, suggesting a potential downside of 15.37%. Micron Technology has a consensus target price of $143.04, suggesting a potential upside of 41.38%. Given Micron Technology’s stronger consensus rating and higher possible upside, analysts clearly believe Micron Technology is more favorable than SiTime.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SiTime $143.99 million 37.62 -$80.54 million ($4.14) -56.01
Micron Technology $25.11 billion 4.49 $778.00 million $0.68 148.78

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

Insider & Institutional Ownership

84.3% of SiTime shares are held by institutional investors. Comparatively, 80.8% of Micron Technology shares are held by institutional investors. 2.3% of SiTime shares are held by insiders. Comparatively, 0.3% of Micron Technology shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

SiTime has a beta of 1.86, indicating that its share price is 86% more volatile than the S&P 500. Comparatively, Micron Technology has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.

Summary

Micron Technology beats SiTime on 10 of the 14 factors compared between the two stocks.

About SiTime

(Get Free Report)

SiTime Corporation designs, develops, and sells silicon timing systems solutions in Taiwan, Hong Kong, the United States, Singapore, and internationally. The company provides resonators and clock integrated circuits, and various types of oscillators. It serves various markets, including communications, datacenter, enterprise, automotive, industrial, internet of things, mobile, consumer, and aerospace and defense. The company sells its products directly to customers, distributors, and resellers. SiTime Corporation was incorporated in 2003 and is based in Santa Clara, California.

About Micron Technology

(Get Free Report)

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.

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