Seagate Technology PLC (STX) versus EMC (EMC) Critical Survey
Seagate Technology PLC (NASDAQ: STX) and EMC (NYSE:EMC) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.
Valuation & Earnings
This table compares Seagate Technology PLC and EMC’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Seagate Technology PLC||$10.77 billion||0.86||$2.05 billion||$2.58||12.47|
Seagate Technology PLC has higher revenue and earnings than EMC. Seagate Technology PLC is trading at a lower price-to-earnings ratio than EMC, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Seagate Technology PLC has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500. Comparatively, EMC has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.
This is a summary of current ratings for Seagate Technology PLC and EMC, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Seagate Technology PLC||3||21||5||1||2.13|
Seagate Technology PLC currently has a consensus target price of $40.46, indicating a potential upside of 25.74%. Given Seagate Technology PLC’s higher possible upside, equities research analysts plainly believe Seagate Technology PLC is more favorable than EMC.
This table compares Seagate Technology PLC and EMC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Seagate Technology PLC||7.17%||81.87%||13.66%|
Institutional & Insider Ownership
90.0% of Seagate Technology PLC shares are owned by institutional investors. Comparatively, 79.9% of EMC shares are owned by institutional investors. 0.9% of Seagate Technology PLC shares are owned by company insiders. Comparatively, 0.4% of EMC shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Seagate Technology PLC pays an annual dividend of $2.52 per share and has a dividend yield of 7.8%. EMC pays an annual dividend of $0.46 per share and has a dividend yield of 1.6%. Seagate Technology PLC pays out 97.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EMC pays out 43.0% of its earnings in the form of a dividend. EMC has raised its dividend for 3 consecutive years.
Seagate Technology PLC beats EMC on 11 of the 14 factors compared between the two stocks.
Seagate Technology PLC Company Profile
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.
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.
Receive News & Stock Ratings for Seagate Technology PLC Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Seagate Technology PLC and related stocks with our FREE daily email newsletter.