Sandisk (NASDAQ:SNDK) vs. Xerox (NASDAQ:XRX) Critical Review

Xerox (NASDAQ:XRX) and Sandisk (NASDAQ:SNDK) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Risk and Volatility

Xerox has a beta of 2.42, suggesting that its share price is 142% more volatile than the S&P 500. Comparatively, Sandisk has a beta of 5.17, suggesting that its share price is 417% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Xerox and Sandisk, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xerox	1	2	1	0	2.00
Sandisk	0	3	21	3	3.00

Xerox presently has a consensus target price of $4.48, indicating a potential upside of 35.04%. Sandisk has a consensus target price of $2,015.61, indicating a potential upside of 13.38%. Given Xerox’s higher possible upside, research analysts clearly believe Xerox is more favorable than Sandisk.

Insider & Institutional Ownership

85.4% of Xerox shares are owned by institutional investors. 1.5% of Xerox shares are owned by company insiders. Comparatively, 0.2% of Sandisk shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Xerox and Sandisk”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xerox	$7.02 billion	0.06	-$1.03 billion	($7.38)	-0.45
Sandisk	$20.25 billion	12.86	$11.43 billion	$72.90	24.39

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

Profitability

This table compares Xerox and Sandisk’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xerox	-11.93%	17.61%	0.65%
Sandisk	56.47%	87.84%	66.03%

Summary

Sandisk beats Xerox on 12 of the 15 factors compared between the two stocks.

About Xerox

Xerox Holdings Corporation, together with its subsidiaries, operates as a workplace technology company that integrates hardware, services, and software for enterprises in the Americas, Europe, the Middle East, Africa, India, and internationally. The company operates through two segments, Print and Other; and FITTLE. The Print and Other segment designs, develops, and sells document systems, solutions, and services; and IT and software products and services. The FITTLE segment offers financing solutions for direct channel customer purchases; and lease financing to end-users. It also offers workplace solutions comprising desktop monochrome, color, and multifunction printers, and ConnectKey software; digital printing presses and light production devices; and digital services that support workflow automation, personalization and communication software, content management solutions, and digitization services. In addition, the company provides graphic communications, in-plant, and production solutions; FreeFlow, a software solutions for the automation and integration of processing of print job comprising file preparation, final production, and electronic publishing; and IT services, end user computing devices, network infrastructure, and communications technology, as well as technology product support, professional engineering, and commercial robotic process automation. Further, it sells paper products and standalone software, such as CareAR, DocuShare, and XMPie; and invests in startups. The company sells its products through its direct sales force, distributors, independent agents, dealers, value-added resellers, systems integrators, and e-commerce marketplaces. The company was formerly known as Xerox Corporation and changed its name to Xerox Holdings Corporation in August 2019. Xerox Holdings Corporation was founded in 1903 and is headquartered in Norwalk, Connecticut.

About Sandisk

SanDisk Corporation offers flash storage solutions. The Company designs, develops and manufactures data storage solutions in a range of form factors using flash memory, controller, firmware and software technologies. The Company operates through flash memory storage products segment. Its solutions include a range of solid state drives (SSD), embedded products, removable cards, universal serial bus (USB), drives, wireless media drives, digital media players, and wafers and components. It offers SSDs for client computing applications, which encompass desktop computers, notebook computers, tablets and other computing devices. Its embedded products are used for embedded storage for mobile phones, tablets, notebooks and other portable and wearable devices, as well as in automotive and connected home applications. Its removable products include cards, USB flash drives, Wireless Drives and Digital Media Players at a range of storage capacities. It sells memory wafers and memory components.