Cree (NASDAQ: CREE) and Micrel (NASDAQ:MCRL) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.
Earnings & Valuation
This table compares Cree and Micrel’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cree||$1.47 billion||2.88||-$98.11 million||($1.14)||-37.27|
Micrel has lower revenue, but higher earnings than Cree. Cree is trading at a lower price-to-earnings ratio than Micrel, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and recommmendations for Cree and Micrel, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cree presently has a consensus target price of $33.17, suggesting a potential downside of 21.93%. Given Cree’s higher probable upside, analysts clearly believe Cree is more favorable than Micrel.
Volatility & Risk
Cree has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Micrel has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.
Institutional & Insider Ownership
98.9% of Cree shares are held by institutional investors. 1.1% of Cree shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Cree and Micrel’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Micrel beats Cree on 6 of the 11 factors compared between the two stocks.
Cree, Inc. is a manufacturer of lighting-class light emitting diode (LED) products, lighting products and semiconductor products for power and radio-frequency (RF) applications. The Company’s products are focused for applications, such as indoor and outdoor lighting, video displays, transportation, electronic signs and signals, power supplies, inverters and wireless systems. The Company has three segments: Lighting Products, LED Products, and Power and RF Products. The Company’s Lighting Products segment offers LED lighting systems and bulbs. The Company’s LED Products segment offers LED components, LED chips and silicon carbide (SiC) materials. The Company’s Power and RF Products segment offers power devices and RF devices. The Company designs, manufactures and markets lighting systems for indoor and outdoor applications, with a focus on LED lighting systems for the commercial, industrial and consumer markets.
Micrel, Incorporated designs, develops, manufactures, and markets a range of high-performance analog, power and mixed-signal integrated circuits (ICs). The Company’s products address a range of markets, including industrial and automotive, wireline communications, enterprise and cloud infrastructure and mobility. It also manufactures custom analog and mixed-signal circuits and provides wafer foundry services for customers which produce electronic systems utilizing semiconductor manufacturing processes, as well as micro-electrical mechanical system (MEMS) technologies. Its offers a linear and power management product portfolio for the networking and communications infrastructure markets, including cloud and enterprise servers, network switches and routers, storage area networks, wireless base stations, and the Internet of Everything. In addition, it offers products that serve the solid state drive market and are seeing strength in the emergence of solid state drives.
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