Head-To-Head Survey: Micron Technology (MU) and Acacia Communications (ACIA)

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

Analyst Recommendations

This is a breakdown of recent ratings for Micron Technology and Acacia Communications, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Micron Technology 0 6 23 1 2.83
Acacia Communications 1 5 9 0 2.53

Micron Technology presently has a consensus target price of $71.70, indicating a potential upside of 59.83%. Acacia Communications has a consensus target price of $40.04, indicating a potential upside of 0.83%. Given Micron Technology’s stronger consensus rating and higher possible upside, analysts clearly believe Micron Technology is more favorable than Acacia Communications.

Risk and Volatility

Micron Technology has a beta of 1.63, indicating that its share price is 63% more volatile than the S&P 500. Comparatively, Acacia Communications has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Micron Technology $20.32 billion 2.56 $5.09 billion $4.41 10.17
Acacia Communications $385.17 million 4.18 $38.50 million $1.19 33.37

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

Profitability

This table compares Micron Technology and Acacia Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Micron Technology 43.35% 51.12% 32.50%
Acacia Communications -4.30% 2.66% 2.25%

Insider and Institutional Ownership

74.0% of Micron Technology shares are owned by institutional investors. Comparatively, 90.8% of Acacia Communications shares are owned by institutional investors. 0.5% of Micron Technology shares are owned by company insiders. Comparatively, 33.2% of Acacia Communications shares are owned by company 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

Micron Technology beats Acacia Communications on 11 of the 15 factors compared between the two stocks.

About Micron Technology

Micron Technology, Inc. provides semiconductor systems worldwide. The company operates through four segments: Compute and Networking Business Unit, Storage Business Unit, Mobile Business Unit, and Embedded Business Unit. It offers DDR3 and DDR4 DRAM products for computers, servers, networking devices, communications equipment, consumer electronics, automotive, and industrial applications; lower power DRAM products for smartphones, tablets, automotive, laptop computers, and other mobile consumer device applications; DDR2 DRAM and DDR DRAM, GDDR5 and GDDR5X DRAM, SDRAM, and RLDRAM products for networking devices, servers, consumer electronics, communications equipment, computer peripherals, and automotive and industrial applications, as well as for computer memory upgrades; and hybrid memory cube semiconductor memory devices. The company also provides NAND products, which are electrically re-writeable, non-volatile semiconductor memory, and storage devices; client solid-state drives (SSDs) for notebooks, desktops, workstations, and other consumer applications; enterprise SSDs for server and storage applications; cloud SSDs; and multi-chip package and managed NAND products. In addition, it manufactures products that are sold under other brand names; and resells flash memory products that are purchased from other NAND Flash suppliers. Further, the company provides 3D XPoint non-volatile memory products; and NOR Flash, which are electrically re-writeable and semiconductor memory devices for automotive, industrial, connected home, and consumer applications. It markets its products to original equipment manufacturers and retailers through its internal sales force, independent sales representatives, and distributors; and through a Web-based customer direct sales channel, and channel and distribution partners. The company was founded in 1978 and is headquartered in Boise, Idaho.

About Acacia Communications

Acacia Communications, Inc. develops, manufactures, and sells high-speed coherent optical interconnect products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific region. Its products include a series of low-power coherent digital signal processor application-specific integrated circuits and silicon photonic integrated circuits that are integrated into families of optical interconnect modules with transmission speeds ranging from 100 to 400 gigabits per second for use in long-haul, metro, and inter-data center markets. The company sells its products through a direct sales force to network equipment manufacturers, network operators, and cloud service providers. Acacia Communications, Inc. was founded in 2009 and is headquartered in Maynard, Massachusetts.

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