Head-To-Head Analysis: Seagate Technology (NASDAQ:STX) vs. Quantum (QMCO)

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Seagate Technology (NASDAQ:STX) and Quantum (OTCMKTS:QMCO) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, profitability, analyst recommendations, institutional ownership and dividends.

Dividends

Seagate Technology pays an annual dividend of $2.52 per share and has a dividend yield of 5.6%. Quantum does not pay a dividend. Seagate Technology pays out 45.7% of its earnings in the form of a dividend.

Risk and Volatility

Seagate Technology has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500. Comparatively, Quantum has a beta of 2.11, suggesting that its stock price is 111% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Seagate Technology and Quantum, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Seagate Technology 5 17 4 0 1.96
Quantum 0 0 0 0 N/A

Seagate Technology presently has a consensus target price of $45.65, suggesting a potential upside of 1.39%. Given Seagate Technology’s higher possible upside, research analysts plainly believe Seagate Technology is more favorable than Quantum.

Earnings and Valuation

This table compares Seagate Technology and Quantum’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Seagate Technology $11.18 billion 1.13 $1.18 billion $5.51 8.17
Quantum $505.35 million 0.17 $3.64 million N/A N/A

Seagate Technology has higher revenue and earnings than Quantum.

Profitability

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

Net Margins Return on Equity Return on Assets
Seagate Technology 14.77% 105.74% 19.57%
Quantum N/A N/A N/A

Institutional and Insider Ownership

89.7% of Seagate Technology shares are held by institutional investors. Comparatively, 52.0% of Quantum shares are held by institutional investors. 1.0% of Seagate Technology shares are held by company insiders. Comparatively, 8.6% of Quantum shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Seagate Technology beats Quantum on 10 of the 13 factors compared between the two stocks.

About Seagate Technology

Seagate Technology plc provides data storage technology and solutions in Singapore, the United States, the Netherlands, and internationally. It manufactures and distributes hard disk drives; solid state drives (SSDs), including serial attached small computer system interface and non-volatile memory express SSDs; solid state hybrid drives; and storage subsystems. The company's products are used in enterprise servers and storage systems; edge compute/client compute applications, primarily for desktop and mobile computing; and edge non-compute/client non-compute applications, such as various end user devices comprising portable external storage systems, surveillance systems, digital video recorders, network-attached storages, and gaming consoles, as well as data centers. It also provides cloud systems and solutions portfolio that includes modular original equipment manufacturer (OEM) storage systems and scale-out storage servers. In addition, the company offers external storage solutions under the Seagate Backup Plus and Expansion product lines, as well as under the LaCie and Maxtor brands in capacities up to 120TB. The company sells its products primarily to OEMs, distributors, and retailers. Seagate Technology plc was founded in 1979 and is headquartered in Dublin, Ireland.

About Quantum

Quantum Corp. engages in the manufacture of computer storage device. It provides solutions for storing and protecting information in physical, virtual and cloud environments. The company was founded by Joel N. Harrison and James M. McCoy in 1980 and is headquartered in San Jose, CA.

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