Silicon Graphics International Corp (NASDAQ: SGI) and QLogic (NASDAQ:QLGC) are both technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, institutional ownership, dividends, profitability, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a breakdown of current ratings for Silicon Graphics International Corp and QLogic, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Silicon Graphics International Corp 0 0 1 0 3.00
QLogic 0 0 0 0 N/A

Silicon Graphics International Corp presently has a consensus target price of $1.60, indicating a potential downside of 79.35%. Given Silicon Graphics International Corp’s higher possible upside, equities research analysts plainly believe Silicon Graphics International Corp is more favorable than QLogic.

Profitability

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

Net Margins Return on Equity Return on Assets
Silicon Graphics International Corp 0.11% 0.98% 0.15%
QLogic 15.71% 9.67% 8.76%

Valuation and Earnings

This table compares Silicon Graphics International Corp and QLogic’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Silicon Graphics International Corp N/A N/A N/A ($0.32) -24.22
QLogic N/A N/A N/A $0.75 21.43

Silicon Graphics International Corp is trading at a lower price-to-earnings ratio than QLogic, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

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

Risk and Volatility

Silicon Graphics International Corp has a beta of 1.98, meaning that its share price is 98% more volatile than the S&P 500. Comparatively, QLogic has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Summary

Silicon Graphics International Corp beats QLogic on 5 of the 9 factors compared between the two stocks.

Silicon Graphics International Corp Company Profile

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.

QLogic Company Profile

QLogic Corporation (QLogic), designs and supplies server and storage networking connectivity products that provide and manage computer data communication. The Company’s products facilitate the transfer of data and enable resource sharing between servers, networks and storage. Its products are used in enterprise, managed service provider, consumer Web, and cloud service provider data centers. Its products are based primarily on Fiber Channel and Ethernet technologies and are used in connection with storage networks, data networks and converged networks. Storage networks are used to provide access to storage across enterprise environments. Fibre Channel is a technology for enterprise storage networking. Data networks are used to provide workstation-to-server, server-to-server, and server-to-storage connectivity using Ethernet. Converged networks are designed to address the data center by consolidating and unifying storage and data networks, using high-speed Ethernet.

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