NVIDIA (NASDAQ: NVDA) and Micron Technology (NASDAQ:MU) are both large-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.
Insider and Institutional Ownership
67.0% of NVIDIA shares are held by institutional investors. Comparatively, 82.5% of Micron Technology shares are held by institutional investors. 5.8% of NVIDIA shares are held by company insiders. Comparatively, 0.5% of Micron Technology shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares NVIDIA and Micron Technology’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NVIDIA||$9.71 billion||15.60||$3.05 billion||$4.82||51.97|
|Micron Technology||$20.32 billion||3.45||$5.09 billion||$6.35||9.54|
Micron Technology has higher revenue and earnings than NVIDIA. Micron Technology is trading at a lower price-to-earnings ratio than NVIDIA, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
NVIDIA has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500. Comparatively, Micron Technology has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.
NVIDIA pays an annual dividend of $0.60 per share and has a dividend yield of 0.2%. Micron Technology does not pay a dividend. NVIDIA pays out 12.4% of its earnings in the form of a dividend.
This table compares NVIDIA and Micron Technology’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and price targets for NVIDIA and Micron Technology, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
NVIDIA currently has a consensus price target of $210.03, indicating a potential downside of 16.15%. Micron Technology has a consensus price target of $56.81, indicating a potential downside of 6.22%. Given Micron Technology’s stronger consensus rating and higher possible upside, analysts clearly believe Micron Technology is more favorable than NVIDIA.
Micron Technology beats NVIDIA on 11 of the 17 factors compared between the two stocks.
NVIDIA Company Profile
Nvidia Corporation focuses on personal computer (PC) graphics, graphics processing unit (GPU) and also on artificial intelligence (AI). The Company’s operates through two segments: GPU and Tegra Processor. The Company’s GPU product brands are aimed at specialized markets, including GeForce for gamers; Quadro for designers; Tesla and DGX for AI data scientists and big data researchers; and GRID for cloud-based visual computing users. The Company’s Tegra brand integrates an entire computer onto a single chip, and incorporates GPUs and multi-core central processing units (CPUs) to drive supercomputing for mobile gaming and entertainment devices, as well as autonomous robots, drones and cars. The Company’s processor has created platforms that address four markets: Gaming, Professional Visualization, Datacenter, and Automotive. The Company’s offerings include NVIDIA DGX AI supercomputer, the NVIDIA DRIVE AI car computing platform and the GeForce NOW cloud gaming service.
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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