Analyzing Digital China (OTCMKTS:DCHIF) and Micron Technology (NASDAQ:MU)

Digital China (OTCMKTS:DCHIF) and Micron Technology (NASDAQ:MU) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Analyst Ratings

This is a summary of recent ratings and price targets for Digital China and Micron Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digital China	0	0	0	0	0.00
Micron Technology	0	4	26	5	3.03

Micron Technology has a consensus target price of $202.79, indicating a potential downside of 14.91%. Given Micron Technology’s stronger consensus rating and higher probable upside, analysts plainly believe Micron Technology is more favorable than Digital China.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Digital China	N/A	N/A	N/A
Micron Technology	22.84%	17.21%	11.28%

Volatility & Risk

Digital China has a beta of -0.17, meaning that its share price is 117% less volatile than the S&P 500. Comparatively, Micron Technology has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digital China	$2.32 billion	0.28	-$35.32 million	N/A	N/A
Micron Technology	$37.38 billion	7.16	$8.54 billion	$7.59	31.40

Micron Technology has higher revenue and earnings than Digital China.

Insider and Institutional Ownership

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

Summary

Micron Technology beats Digital China on 13 of the 13 factors compared between the two stocks.

About Digital China

Digital China Holdings Limited, an investment holding company, provides big data products and solutions for government and enterprise customers primarily in Mainland China. The Big Data Products and Solutions segment sells data software products focused on spatial-temporal big data and artificial intelligence. This segment offers data fabric comprising Yan Cloud DaaS, a software platform that supports data sharing, interoperability, and integration of isolated digital islands; and Sysnet, an integration platform that integrates various data, applications, and services. It also provides data hub, including data management, security, innovation, and aggregation products; and digital twin, which constructs a digital replica of the physical city, as well as data solutions for city and supply chain digital native transformation, and fintech. The Software and Operating Services segment offers end-to-end data-enabled supply chain operating services, as well as software development, testing, operation, and maintenance services. The Traditional and Localization Services segment provides systems integration services, e-commerce supply chain services, and software and operating services. The segment also engages in the investments, property sales and rental, and other businesses. The company also engages in the provision of logistics, systems integration, and manpower services, as well as engages in finance lease business and investment holding activities. Digital China Holdings Limited was incorporated in 2000 and is headquartered in Wan Chai, Hong Kong.

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.