Reviewing Micron Technology (MU) and Advanced Semiconductor Engnrng (ASX)

Micron Technology (NASDAQ: MU) and Advanced Semiconductor Engnrng (NYSE:ASX) are both large-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Valuation and Earnings

This table compares Micron Technology and Advanced Semiconductor Engnrng’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Micron Technology $20.32 billion 2.45 $5.09 billion $4.32 9.96
Advanced Semiconductor Engnrng $8.53 billion 1.25 $659.30 million $0.46 13.98

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

Institutional & Insider Ownership

81.2% of Micron Technology shares are held by institutional investors. Comparatively, 5.8% of Advanced Semiconductor Engnrng shares are held by institutional investors. 0.5% of Micron Technology shares are held by company insiders. Comparatively, 22.9% of Advanced Semiconductor Engnrng shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Micron Technology 25.04% 32.09% 16.15%
Advanced Semiconductor Engnrng 8.74% 13.80% 7.00%

Analyst Recommendations

This is a breakdown of recent ratings for Micron Technology and Advanced Semiconductor Engnrng, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Micron Technology 1 3 28 0 2.84
Advanced Semiconductor Engnrng 0 0 0 0 N/A

Micron Technology currently has a consensus target price of $47.90, indicating a potential upside of 11.36%. Given Micron Technology’s higher probable upside, analysts clearly believe Micron Technology is more favorable than Advanced Semiconductor Engnrng.

Dividends

Advanced Semiconductor Engnrng pays an annual dividend of $0.16 per share and has a dividend yield of 2.5%. Micron Technology does not pay a dividend. Advanced Semiconductor Engnrng pays out 34.8% of its earnings in the form of a dividend.

Volatility & Risk

Micron Technology has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500. Comparatively, Advanced Semiconductor Engnrng has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.

Summary

Micron Technology beats Advanced Semiconductor Engnrng on 12 of the 15 factors compared between the two stocks.

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.

Advanced Semiconductor Engnrng Company Profile

Advanced Semiconductor Engineering, Inc. is a provider of semiconductor packaging and testing services. The Company offers a range of semiconductors packaging, testing and electronic manufacturing services (EMS). The Company’s segments include Packaging, Testing, EMS and Others. The Company provides services in packaging bare semiconductors into finished semiconductors with a range of electrical and thermal characteristics, as well as testing services, including front-end engineering testing, wafer probing and final testing services. It also sells goods from EMS. The Company engages in other activities, such as substrate production and real estate business. It provides integrated solutions for EMS in relation to computers, peripherals, communications, industrial, automotive, and storage and server applications. The Company provides front-end engineering testing services, including customized software development, electrical design validation, and reliability and failure analysis.

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