Contrasting Super Micro Computer (SMCI) & The Competition

Super Micro Computer (NASDAQ:SMCI) is one of 82 publicly-traded companies in the “Technology Hardware, Storage & Peripherals” industry, but how does it compare to its competitors? We will compare Super Micro Computer to related companies based on the strength of its earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Risk & Volatility

Super Micro Computer has a beta of 1.95, meaning that its share price is 95% more volatile than the S&P 500. Comparatively, Super Micro Computer’s competitors have a beta of 1.56, meaning that their average share price is 56% more volatile than the S&P 500.

Profitability

This table compares Super Micro Computer and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Super Micro Computer	3.70%	17.49%	6.00%
Super Micro Computer Competitors	-609.25%	-15.45%	3.05%

Earnings and Valuation

This table compares Super Micro Computer and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Super Micro Computer	$21.97 billion	$1.05 billion	16.65
Super Micro Computer Competitors	$23.51 billion	$3.69 billion	6.50

Super Micro Computer’s competitors have higher revenue and earnings than Super Micro Computer. Super Micro Computer is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

84.1% of Super Micro Computer shares are owned by institutional investors. Comparatively, 51.3% of shares of all “Technology Hardware, Storage & Peripherals” companies are owned by institutional investors. 16.1% of Super Micro Computer shares are owned by company insiders. Comparatively, 10.5% of shares of all “Technology Hardware, Storage & Peripherals” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Super Micro Computer and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Super Micro Computer	2	12	4	0	2.11
Super Micro Computer Competitors	1055	4267	7605	358	2.55

Super Micro Computer presently has a consensus price target of $39.21, suggesting a potential upside of 24.65%. As a group, “Technology Hardware, Storage & Peripherals” companies have a potential upside of 25.57%. Given Super Micro Computer’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Super Micro Computer has less favorable growth aspects than its competitors.

Summary

Super Micro Computer beats its competitors on 7 of the 13 factors compared.

About Super Micro Computer

Super Micro Computer, Inc., together with its subsidiaries, develops and manufactures high performance server and storage solutions based on modular and open architecture in the United States, Europe, Asia, and internationally. Its solutions range from complete server, storage systems, modular blade servers, blades, workstations, full racks, networking devices, server sub-systems, server management software, and security software. The company provides application-optimized server solutions, rackmount and blade servers, storage, and subsystems and accessories; and server software management solutions, such as Server Management Suite, including Supermicro Server Manager, Supermicro Power Management software, Supermicro Update Manager, SuperCloud Composer, and SuperDoctor 5. In addition, it offers server subsystems and accessories comprising server boards, chassis, power supplies, and other accessories. Further, the company provides server and storage system integration, configuration, and software upgrade and update services; and technical documentation services, as well as identifies service requirements, creates and executes project plans, and conducts verification testing and technical documentation, and training services. Additionally, it offers help desk and on-site product support services for its server and storage systems; and customer support services, including ongoing maintenance and technical support for its products. The company provides its products to enterprise data centers, cloud computing, artificial intelligence, and 5G and edge computing markets. It sells its products through direct and indirect sales force, distributors, value-added resellers, system integrators, and original equipment manufacturers. The company was incorporated in 1993 and is headquartered in San Jose, California.