Both Berkshire Hathaway and Micron Stocks Look Cheap on the Surface. But I Like 1 Better Than the Other.
A conglomerate and a memory maker look similarly priced. But the earnings streams behind those two multiples could hardly be more different.
Overview
Here's an odd pairing the market is serving up right now. Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB), the sprawling conglomerate, trades at about 15 times its earnings over the past year while sitting near its 52-week high. Micron Technology (NASDAQ: MU), the memory chipmaker, trades at about 20 times -- even though its stock has lost more than a third of its value from its peak and its earnings are exploding. Both valuations are below the overall market's valuation.
On the surface, the market is offering a good entry point into both stocks. But their underlying stories couldn't be more different.
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Originally published at www.fool.com.