Head-To-Head Comparison: Micron Technology (NASDAQ:MU) versus SiTime (NASDAQ:SITM)

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

Insider & Institutional Ownership

80.8% of Micron Technology shares are owned by institutional investors. Comparatively, 84.3% of SiTime shares are owned by institutional investors. 0.3% of Micron Technology shares are owned by company insiders. Comparatively, 2.3% of SiTime shares are owned 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.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Micron Technology	$25.11 billion	4.53	$778.00 million	$0.68	150.08
SiTime	$176.99 million	34.46	-$80.54 million	($4.14)	-63.05

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.

Profitability

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

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Micron Technology and SiTime, as provided by MarketBeat.

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

Micron Technology currently has a consensus price target of $143.04, suggesting a potential upside of 40.16%. SiTime has a consensus price target of $196.25, suggesting a potential downside of 24.82%. Given Micron Technology’s stronger consensus rating and higher probable upside, analysts clearly believe Micron Technology is more favorable than SiTime.

Risk and Volatility

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

Summary

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

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 SiTime

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.