Logitech International (NASDAQ: LOGI) and Fusion-IO (NYSE:FIO) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.

Insider & Institutional Ownership

38.7% of Logitech International shares are owned by institutional investors. 2.2% of Logitech International shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Logitech International pays an annual dividend of $2.47 per share and has a dividend yield of 6.9%. Fusion-IO does not pay a dividend. Logitech International pays out 190.0% 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 summary of current ratings and recommmendations for Logitech International and Fusion-IO, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Logitech International 0 0 4 0 3.00
Fusion-IO 0 0 0 0 N/A

Logitech International presently has a consensus target price of $45.00, suggesting a potential upside of 25.21%.

Profitability

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

Net Margins Return on Equity Return on Assets
Logitech International 9.32% 24.58% 13.78%
Fusion-IO -30.49% -26.35% -20.81%

Valuation & Earnings

This table compares Logitech International and Fusion-IO’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Logitech International $2.21 billion 2.63 $205.87 million $1.30 27.65
Fusion-IO N/A N/A N/A ($1.01) N/A

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

Summary

Logitech International beats Fusion-IO on 9 of the 10 factors compared between the two stocks.

About Logitech International

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.

About Fusion-IO

Fusion-io, Inc. provides solutions for enterprises, hyperscale datacenters, and small to medium enterprises (SMEs), that accelerates databases, virtualization, mission-critical applications, cloud computing, big data, and information systems. Its hardware and software platforms and solutions enable the acceleration of data and applications. It sells its solutions through a global direct sales force, original equipment manufacturers. The Company’s portfolio of storage memory products packages ioMemory hardware combined with its VSL software into a family of products suitable for direct, shared, and cached acceleration environments. Direct acceleration is provided by its ioDrive, ioScale, and ioFX enterprise grade PCIe-products that leverage flash and are placed in x86 servers or workstations to directly accelerate locally hosted applications. Its shared acceleration is provided by its ION Data Accelerator or ioControl software combined with ioMemory, VSL, and industry-standard servers.

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