Head to Head Contrast: Silicon Graphics International (SGI) & Key Tronic (KTCC)

Silicon Graphics International (NASDAQ: SGI) and Key Tronic (NASDAQ:KTCC) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Silicon Graphics International and Key Tronic’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Silicon Graphics International N/A N/A N/A ($0.32) -24.22
Key Tronic $467.80 million 0.16 $5.61 million $0.39 18.30

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Silicon Graphics International and Key Tronic, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Silicon Graphics International 0 0 2 0 3.00
Key Tronic 0 0 0 0 N/A

Silicon Graphics International presently has a consensus price target of $2.15, indicating a potential downside of 72.26%. Given Silicon Graphics International’s higher possible upside, equities research analysts clearly believe Silicon Graphics International is more favorable than Key Tronic.

Insider & Institutional Ownership

80.9% of Silicon Graphics International shares are owned by institutional investors. Comparatively, 42.0% of Key Tronic shares are owned by institutional investors. 3.9% of Silicon Graphics International shares are owned by insiders. Comparatively, 7.2% of Key Tronic shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Silicon Graphics International and Key Tronic’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Silicon Graphics International 0.11% 0.98% 0.15%
Key Tronic 0.93% 3.75% 1.83%

Summary

Key Tronic beats Silicon Graphics International on 7 of the 10 factors compared between the two stocks.

Silicon Graphics International Company Profile

Silicon Graphics International Corp. (SGI) is engaged in providing solutions for compute, data analytics and data management. The Company develops, markets and sells a line of mid-range and high-end scale-out and scale-up servers, enterprise-class storage, differentiating software and designed-to-order solutions for data center deployments. The Company operates through the segments, including Product and Service. The Company’s Product segment consists of compute and storage solutions, which include products from both HPC and HPDA segments. The Company’s Product segment includes scale-out computing, scale-up computing, software and cloud/Web solutions. Its storage solutions include both hardware and software offerings for data storage and management. The Service segment consists of customer service support and professional services. SGI systems enable customers to access, analyze, transform, manage and visualize information in real and near real-time.

Key Tronic Company Profile

Key Tronic Corporation, doing business as KeyTronicEMS Co., is engaged in contract manufacturing for a range of products. The Company provides electronic manufacturing services (EMS) and solutions to original equipment manufacturers (OEMs) of a range of products. The Company provides engineering services, procurement and distribution, materials management, manufacturing and assembly services, in-house testing, and customer service. The Company provides EMS services, such as product design, surface mount technologies (SMT) and pin through hole capability for printed circuit board assembly (PCBA), tool making, precision plastic molding, sheet metal fabrication, liquid injection molding, complex assembly, automated tape winding, prototype design and full product assembly. The Company’s manufacturing operations are located in Oakdale, Minnesota; Fayetteville, Arkansas; Corinth, Mississippi; Harrodsburg, Kentucky, and foreign manufacturing operations in Juarez, Mexico, and Shanghai, China.

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