Logitech International (NASDAQ: LOGI) and EMC (NYSE:EMC) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.

Valuation and Earnings

This table compares Logitech International and EMC’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Logitech International $2.27 billion 2.66 $251.67 million $1.24 29.99
EMC N/A N/A N/A $1.07 27.15

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

Insider & Institutional Ownership

37.8% of Logitech International shares are held by institutional investors. Comparatively, 79.9% of EMC shares are held by institutional investors. 2.2% of Logitech International shares are held by company insiders. Comparatively, 0.4% of EMC shares are held by company 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.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Logitech International and EMC, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Logitech International 0 1 4 0 2.80
EMC 0 0 0 0 N/A

Logitech International presently has a consensus price target of $38.80, indicating a potential upside of 4.33%. Given Logitech International’s higher possible upside, analysts clearly believe Logitech International is more favorable than EMC.

Profitability

This table compares Logitech International and EMC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Logitech International 9.15% 25.18% 13.82%
EMC 10.47% 10.66% 5.47%

Risk & Volatility

Logitech International has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500. Comparatively, EMC has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500.

Dividends

Logitech International pays an annual dividend of $0.57 per share and has a dividend yield of 1.5%. EMC pays an annual dividend of $0.46 per share and has a dividend yield of 1.6%. Logitech International pays out 46.0% of its earnings in the form of a dividend. EMC pays out 43.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Logitech International has increased its dividend for 3 consecutive years. EMC is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Logitech International beats EMC on 8 of the 13 factors compared between the two stocks.

Logitech International Company Profile

Logitech International S.A. is a holding company. The Company designs, manufactures and markets products that allow people to connect through music, gaming, video, computing, and other digital platforms. The Company operates through peripheral segment. The Company offers its products to a network of domestic and international customers, including direct sales to retailers, e-tailers, and indirect sales through distributors. The Company’s retail network across the world includes consumer electronics distributors, retailers, mass merchandisers, specialty electronics stores, computer and telecommunications stores, value-added resellers and online merchants. Its music solutions are focused primarily on mobile speakers, including its UE BOOM family of mobile wireless speakers, its Jaybird wireless audio wearables for sports and active lifestyles, and its custom in-ear headphones. It offers a range of gaming gear for gamers, including mice, keyboards, headsets, gamepads and steering wheels.

EMC Company Profile

EMC Corporation (EMC) develops, delivers and supports the information technology (IT) industry’s range of information infrastructure and virtual infrastructure technologies, solutions and services. EMC manages the Company as part of a federation of businesses: EMC Information Infrastructure, VMware Virtual Infrastructure, Pivotal and Virtustream. EMC’s Information Infrastructure business provides a foundation for organizations to store, manage, protect, analyze and secure information. EMC’s VMware Virtual Infrastructure business is engaged in virtualization and cloud infrastructure solutions that enable businesses to help transform the way they build, deliver and consume IT resources in a manner that is based on their specific needs. EMC’s Pivotal business unites strategic technology, people and programs from EMC and VMware and has a platform that consists of data, agile development practices and a cloud independent platform-as-a-service.

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