Seagate Technology (STX) and Dell (NASDAQ:DELL) Financial Survey

Dell (NASDAQ: DELL) and Seagate Technology (NASDAQ:STX) are both computer hardware – nec companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Earnings & Valuation

This table compares Dell and Seagate Technology’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dell N/A N/A N/A $5.91 N/A
Seagate Technology $10.77 billion 1.38 $772.00 million $2.65 19.34

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

Dividends

Seagate Technology pays an annual dividend of $2.52 per share and has a dividend yield of 4.9%. Dell does not pay a dividend. Seagate Technology pays out 95.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

91.3% of Seagate Technology shares are owned by institutional investors. 0.9% of Seagate Technology shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Dell and Seagate Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dell N/A N/A N/A
Seagate Technology 7.41% 84.50% 13.27%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Dell and Seagate Technology, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dell 0 0 0 0 N/A
Seagate Technology 3 21 5 1 2.13

Seagate Technology has a consensus target price of $43.42, indicating a potential downside of 15.29%.

Summary

Seagate Technology beats Dell on 9 of the 11 factors compared between the two stocks.

About Dell

Dell Inc. (Dell) is a global information technology company that offers its customers a range of solutions and services delivered directly by Dell and through other distribution channels. Dell is a holding company that conducts its business worldwide through its subsidiaries. The Company operates in four segments: Large Enterprise, Public, Small and Medium Business, and Consumer. The Company’s Large Enterprise customers include global and national corporate businesses. Its Public customers, which include educational institutions, government, health care, and law enforcement agencies, operate in their own communities. Its SMB segment is focused on helping small and medium-sized businesses by offering products, services, and solutions. Its Consumer segment is focused on delivering technology experience of entertainment, mobility, gaming, and design. In March 2014, the Company acquired StatSoft, a provider of advanced analytics solutions.

About Seagate Technology

Seagate Technology public limited company is a provider of electronic data storage technology and solutions. The Company’s principal products are hard disk drives (HDDs). In addition to HDDs, it produces a range of electronic data storage products, including solid state hybrid drives, solid state drives, peripheral component interconnect express (PCIe) cards and serial advanced technology architecture (SATA) controllers. Its storage technology portfolio also includes storage subsystems and high performance computing solutions. Its products are designed for applications in enterprise servers and storage systems, client compute applications and client non-compute applications. It designs, fabricates and assembles various components found in its disk drives, including read/write heads and recording media. Its design and manufacturing operations are based on technology platforms that are used to produce various disk drive products that serve multiple data storage applications and markets.

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