Coherent (NASDAQ: COHR) and Micron Technology (NASDAQ:MU) are both mid-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Coherent 11.08% 24.98% 12.59%
Micron Technology 14.66% 19.05% 9.17%

Volatility and Risk

Coherent has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, Micron Technology has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500.

Earnings and Valuation

This table compares Coherent and Micron Technology’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Coherent $1.48 billion 3.69 $403.41 million $6.63 33.43
Micron Technology $17.40 billion 2.02 $7.03 billion $2.17 14.51

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Coherent and Micron Technology, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Coherent 0 0 7 0 3.00
Micron Technology 1 4 25 0 2.80

Coherent presently has a consensus target price of $266.43, suggesting a potential upside of 20.21%. Micron Technology has a consensus target price of $35.74, suggesting a potential upside of 13.53%. Given Coherent’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Coherent is more favorable than Micron Technology.

Institutional and Insider Ownership

90.2% of Coherent shares are held by institutional investors. Comparatively, 79.3% of Micron Technology shares are held by institutional investors. 1.4% of Coherent shares are held by insiders. Comparatively, 0.7% of Micron Technology shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Coherent beats Micron Technology on 9 of the 14 factors compared between the two stocks.

About Coherent

Coherent, Inc. is a photonics manufacturer. The Company is engaged in designing, manufacturing, servicing and marketing of lasers and related accessories for a range of scientific, commercial and industrial applications. It operates through two segments: Specialty Lasers and Systems (SLS) and Commercial Lasers and Components (CLC). SLS develops and manufactures configurable products serving the microelectronics, scientific research and government programs, and original equipment manufacturer (OEM) components and instrumentation markets. The Commercial Lasers and Components segment focuses on higher volume products that are offered in set configurations. The product architectures are designed for exchange at the point of use such that substantially all product service and repairs are based upon advanced replacement and depot (that is factory) repair. CLC’s primary markets include materials processing, OEM components, and instrumentation and microelectronics.

About Micron Technology

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.

Receive News & Stock Ratings for Coherent Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Coherent Inc. and related stocks with our FREE daily email newsletter.