Seagate Technology PLC (NASDAQ: STX) and QLogic Corporation (NASDAQ:QLGC) are both computer hardware – nec companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Profitability

This table compares Seagate Technology PLC and QLogic Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Seagate Technology PLC 7.41% 84.50% 13.27%
QLogic Corporation 15.71% 9.67% 8.76%

Institutional and Insider Ownership

90.3% of Seagate Technology PLC shares are held by institutional investors. 0.9% of Seagate Technology PLC 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.

Dividends

Seagate Technology PLC pays an annual dividend of $2.52 per share and has a dividend yield of 6.9%. QLogic Corporation does not pay a dividend. Seagate Technology PLC pays out 95.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Seagate Technology PLC and QLogic Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Seagate Technology PLC 3 21 5 1 2.13
QLogic Corporation 0 0 0 0 N/A

Seagate Technology PLC presently has a consensus target price of $41.65, indicating a potential upside of 14.65%.

Earnings & Valuation

This table compares Seagate Technology PLC and QLogic Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Seagate Technology PLC $10.77 billion 0.98 $772.00 million $2.64 13.76
QLogic Corporation N/A N/A N/A $0.74 N/A

Seagate Technology PLC has higher revenue and earnings than QLogic Corporation. QLogic Corporation is trading at a lower price-to-earnings ratio than Seagate Technology PLC, indicating that it is currently the more affordable of the two stocks.

Summary

Seagate Technology PLC beats QLogic Corporation on 9 of the 11 factors compared between the two stocks.

About Seagate Technology PLC

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.

About QLogic Corporation

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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