Comparing Marvell Technology (NASDAQ:MRVL) & Micron Technology (NASDAQ:MU)

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

Dividends

Micron Technology pays an annual dividend of $0.46 per share and has a dividend yield of 0.7%. Marvell Technology pays an annual dividend of $0.24 per share and has a dividend yield of 0.5%. Micron Technology pays out 11.0% of its earnings in the form of a dividend. Marvell Technology pays out -23.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Micron Technology	$31.32 billion	2.51	$778.00 million	$4.17	16.84
Marvell Technology	$5.77 billion	7.60	-$933.40 million	($1.02)	-49.63

Micron Technology has higher revenue and earnings than Marvell Technology. Marvell Technology 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 Marvell Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Micron Technology	13.34%	8.32%	5.49%
Marvell Technology	-27.49%	4.59%	3.20%

Insider and Institutional Ownership

80.8% of Micron Technology shares are held by institutional investors. Comparatively, 83.5% of Marvell Technology shares are held by institutional investors. 0.3% of Micron Technology shares are held by company insiders. Comparatively, 0.3% of Marvell Technology shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Micron Technology has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, Marvell Technology has a beta of 1.78, indicating that its stock price is 78% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Micron Technology and Marvell Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Micron Technology	1	3	20	1	2.84
Marvell Technology	0	2	24	2	3.00

Micron Technology presently has a consensus target price of $128.56, indicating a potential upside of 83.11%. Marvell Technology has a consensus target price of $114.56, indicating a potential upside of 126.30%. Given Marvell Technology’s stronger consensus rating and higher probable upside, analysts plainly believe Marvell Technology is more favorable than Micron Technology.

Summary

Marvell Technology beats Micron Technology on 9 of the 17 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 Marvell Technology

Marvell Technology, Inc., together with its subsidiaries, provides data infrastructure semiconductor solutions, spanning the data center core to network edge. The company develops and scales complex System-on-a-Chip architectures, integrating analog, mixed-signal, and digital signal processing functionality. It offers a portfolio of Ethernet solutions, including controllers, network adapters, physical transceivers, and switches; single or multiple core processors; and custom application specific integrated circuits. The company also provides electro-optical products, including pulse amplitude modulations, coherent digital signal processors, laser drivers, trans-impedance amplifiers, silicon photonics, and data center interconnect solutions; fibre channel products comprising host bus adapters and controllers; storage controllers for hard disk drives and solid-state-drives; and host system interfaces, including serial attached SCSI, serial advanced technology attachment, peripheral component interconnect express, non-volatile memory express (NVMe), and NVMe over fabrics. It has operations in the United States, Argentina, China, India, Israel, Japan, Singapore, South Korea, Taiwan, and Vietnam. Marvell Technology, Inc. was incorporated in 1995 and is headquartered in Wilmington, Delaware.