Quantum Corporation (NYSE: QTM) and Silicon Graphics International Corp (NASDAQ:SGI) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Risk and Volatility

Quantum Corporation has a beta of 2.39, indicating that its stock price is 139% more volatile than the S&P 500. Comparatively, Silicon Graphics International Corp has a beta of 1.98, indicating that its stock price is 98% more volatile than the S&P 500.

Earnings and Valuation

This table compares Quantum Corporation and Silicon Graphics International Corp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Quantum Corporation $505.92 million 0.42 $19.45 million $0.07 87.44
Silicon Graphics International Corp N/A N/A N/A ($0.32) -24.22

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

Institutional and Insider Ownership

64.2% of Quantum Corporation shares are owned by institutional investors. Comparatively, 80.9% of Silicon Graphics International Corp shares are owned by institutional investors. 8.6% of Quantum Corporation shares are owned by company insiders. Comparatively, 3.9% of Silicon Graphics International Corp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Quantum Corporation and Silicon Graphics International Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Quantum Corporation 0.64% -7.26% 3.87%
Silicon Graphics International Corp 0.11% 0.98% 0.15%

Analyst Recommendations

This is a breakdown of recent recommendations for Quantum Corporation and Silicon Graphics International Corp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Quantum Corporation 0 0 1 0 3.00
Silicon Graphics International Corp 0 0 1 0 3.00

Quantum Corporation presently has a consensus target price of $10.00, indicating a potential upside of 63.40%. Silicon Graphics International Corp has a consensus target price of $1.60, indicating a potential downside of 79.35%. Given Quantum Corporation’s higher probable upside, equities research analysts clearly believe Quantum Corporation is more favorable than Silicon Graphics International Corp.

Summary

Quantum Corporation beats Silicon Graphics International Corp on 7 of the 9 factors compared between the two stocks.

About Quantum Corporation

Quantum Corporation focuses on scale-out storage, archive and data protection, providing solutions for capturing, sharing, managing and preserving digital assets over the entire data lifecycle. The Company’s end-to-end tiered storage solutions enable users to maximize the value of their data by making it accessible whenever and wherever needed, retaining it indefinitely and reducing total cost and complexity. It works with a network of distributors, value-added resellers (VARs), direct marketing resellers (DMRs), original equipment manufacturers (OEMs) and other suppliers to meet customers’ evolving needs. Its scale-out storage portfolio includes StorNext software, appliances and full systems called StorNext Pro Solutions, as well as Xcellis workflow storage, QXS disk storage, Lattus extended online storage and Q-Cloud Archive and Vault services. Its StorNext offerings enable customers to manage large unstructured data sets in an information workflow.

About Silicon Graphics International Corp

Silicon Graphics International Corp. (SGI) is engaged in providing solutions for compute, data analytics and data management. The Company develops, markets and sells a line of mid-range and high-end scale-out and scale-up servers, enterprise-class storage, differentiating software and designed-to-order solutions for data center deployments. The Company operates through the segments, including Product and Service. The Company’s Product segment consists of compute and storage solutions, which include products from both HPC and HPDA segments. The Company’s Product segment includes scale-out computing, scale-up computing, software and cloud/Web solutions. Its storage solutions include both hardware and software offerings for data storage and management. The Service segment consists of customer service support and professional services. SGI systems enable customers to access, analyze, transform, manage and visualize information in real and near real-time.

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