Fusion-IO (NYSE:FIO) & Seagate Technology (STX) Head-To-Head Comparison

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

Analyst Recommendations

This is a breakdown of recent recommendations for Seagate Technology and Fusion-IO, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Seagate Technology 3 21 5 1 2.13
Fusion-IO 0 0 0 0 N/A

Seagate Technology currently has a consensus target price of $41.77, indicating a potential upside of 3.16%.

Valuation & Earnings

This table compares Seagate Technology and Fusion-IO’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Seagate Technology $10.77 billion 1.09 $772.00 million $2.65 15.28
Fusion-IO N/A N/A N/A ($1.01) N/A

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

Dividends

Seagate Technology pays an annual dividend of $2.52 per share and has a dividend yield of 6.2%. Fusion-IO does not pay a dividend. Seagate Technology pays out 95.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional & Insider Ownership

91.8% of Seagate Technology shares are held by institutional investors. 0.9% of Seagate Technology shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Seagate Technology 7.41% 84.50% 13.27%
Fusion-IO -30.49% -26.35% -20.81%

Summary

Seagate Technology beats Fusion-IO on 10 of the 11 factors compared between the two stocks.

Seagate Technology Company Profile

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.

Fusion-IO Company Profile

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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