Stock Showdown: Micron Technology Inc (MU) Vs. SanDisk Corporation (SNDK)

Using our extensive database of hedge funds, we can say that managers who keep Micron Technology Inc (NASDAQ:MU)’s shares in their portfolios were quite optimistic about its future performance. David Einhorn’s Greenlight Capital tops the list of the largest owners of Micron. Over the last quarter, his fund acquired another 8% of the company’s stock, ending up with 33.50 million shares valued at $910.20 million. Viking Global increased its position by 55%, finishing the first quarter of the year with 31.15 million shares valued at $844.99 million. It is interesting that among the top ten hedge funds with the largest stakes in Micron Technology Inc (NASDAQ:MU) from our database, none decided to cut their positions.

Hedge fund activity among the top shareholders of SanDisk Corporation (NASDAQ:SNDK) was rather more fractured. David Cohen and Harold Levy, the managers of Iridian Asset Management, increased their stake in SanDisk by 25%, becoming the largest holders of its shares in our database with 6.35 million units at $404.11 million. The opposite actions were taken by Michael Lowenstein’s Kensico Capital, and Jean-Marie Eveillard’s First Eagle Investment Management. The former reduced its position by 1%, ending up holding 6.27 million shares worth $399.17 million. The latter reduced its holdings in the portfolio to 1.97 million shares valued at $125.07 million.

Overall, the hedge fund managers seem to be more optimistic about Micron Technology Inc (NASDAQ:MU). In total, 100 funds were holding Micron’s shares by the end of the first quarter with a value of $6.96 billion after they added around 9.42% to their positions. SanDisk Corporation (NASDAQ:SNDK) can be found in the portfolios of 40 funds, who have decided to cut their positions during the first three months of the year by 24.82%, leaving some $1.35 billion of managed money in this stock.

While Mr. Market reacted negatively to the recent performance of both companies, Micron still has the reputation of being a global leader and top performer. As we see, Micron’s shares are relatively cheaper in terms of P/E, they are more attractive fundamentally, and the best money managers simply love this stock. So, basing on what we have discussed, we would suggest loading more money into Micron Technology Inc (NASDAQ:MU) rather than SanDisk Corporation (NASDAQ:SNDK), as the former offers much more attractive potential for share growth.

Winner: Micron (MU)

Disclosure: None