Nimble Storage (NMBL) versus Western Digital Corp (WDC) Financial Analysis
Nimble Storage (NYSE: NMBL) and Western Digital Corp (NASDAQ:WDC) are both technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.
This is a summary of current recommendations for Nimble Storage and Western Digital Corp, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Western Digital Corp||0||6||28||1||2.86|
Nimble Storage currently has a consensus target price of $12.86, indicating a potential upside of 2.99%. Western Digital Corp has a consensus target price of $105.50, indicating a potential upside of 19.51%. Given Western Digital Corp’s stronger consensus rating and higher possible upside, analysts plainly believe Western Digital Corp is more favorable than Nimble Storage.
Valuation and Earnings
This table compares Nimble Storage and Western Digital Corp’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Western Digital Corp||$19.09 billion||1.35||$4.40 billion||$1.28||68.97|
Western Digital Corp has higher revenue and earnings than Nimble Storage. Nimble Storage is trading at a lower price-to-earnings ratio than Western Digital Corp, indicating that it is currently the more affordable of the two stocks.
This table compares Nimble Storage and Western Digital Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Western Digital Corp||5.78%||10.01%||3.79%|
Institutional & Insider Ownership
63.4% of Nimble Storage shares are owned by institutional investors. Comparatively, 83.4% of Western Digital Corp shares are owned by institutional investors. 20.9% of Nimble Storage shares are owned by insiders. Comparatively, 0.5% of Western Digital Corp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Western Digital Corp pays an annual dividend of $2.00 per share and has a dividend yield of 2.3%. Nimble Storage does not pay a dividend. Western Digital Corp pays out 156.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Risk and Volatility
Nimble Storage has a beta of 1.78, suggesting that its stock price is 78% more volatile than the S&P 500. Comparatively, Western Digital Corp has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.
Western Digital Corp beats Nimble Storage on 11 of the 14 factors compared between the two stocks.
Nimble Storage Company Profile
Nimble Storage, Inc. (Nimble Storage) focuses on providing its end-customers with data. The Company’s Predictive Cloud Platform combines predictive analytics, flash storage and multicloud infrastructure to manage operations in on-premises data centers and in the cloud. Its products allow end-customers to deploy workloads flexibly on flash arrays, converged infrastructure and the public cloud. Its operating system includes NimbleOS. NimbleOS runs across all of its All Flash and Adaptive Flash (Hybrid) arrays and powers Nimble Cloud Volumes. The features of NimbleOS include Cache Accelerated Sequential Layout (CASL), Variable Block Inline Deduplication, Variable Block Inline Compression, Efficient All Flash Array Architecture, Dynamic Caching for Adaptive Flash Arrays, Efficient, Instant Snapshots and Replication, SmartSecure Encryption and Data Shredding and Scalability.
Western Digital Corp Company Profile
Western Digital Corporation (Western Digital) is a developer, manufacturer and provider of data storage devices and solutions that address the needs of the information technology (IT) industry and the infrastructure that enables the proliferation of data in virtually every industry. The Company’s portfolio of offerings addresses three categories: Datacenter Devices and Solutions (capacity and performance enterprise hard disk drives (HDDs), enterprise solid state drives (SSDs), datacenter software and system solutions); Client Devices (mobile, desktop, gaming and digital video hard drives, client SSDs, embedded products and wafers), and Client Solutions (removable products, hard drive content solutions and flash content solutions). The Company develops and manufactures a portion of the recording heads and magnetic media used in its hard drive products.
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