Super Micro Computer (NASDAQ: SMCI) and Dell Technologies (NYSE:DVMT) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.
Institutional & Insider Ownership
81.4% of Super Micro Computer shares are held by institutional investors. Comparatively, 23.1% of Dell Technologies shares are held by institutional investors. 23.6% of Super Micro Computer shares are held by company insiders. Comparatively, 45.0% of Dell Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Super Micro Computer and Dell Technologies’ net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
|Super Micro Computer
This is a breakdown of current recommendations for Super Micro Computer and Dell Technologies, as provided by MarketBeat.
||Strong Buy Ratings
|Super Micro Computer
Super Micro Computer currently has a consensus price target of $28.83, suggesting a potential upside of 74.22%. Dell Technologies has a consensus price target of $110.00, suggesting a potential upside of 54.30%. Given Super Micro Computer’s higher probable upside, research analysts clearly believe Super Micro Computer is more favorable than Dell Technologies.
Valuation & Earnings
This table compares Super Micro Computer and Dell Technologies’ gross revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
|Super Micro Computer
Super Micro Computer has higher earnings, but lower revenue than Dell Technologies. Dell Technologies is trading at a lower price-to-earnings ratio than Super Micro Computer, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Super Micro Computer has a beta of 0.17, indicating that its share price is 83% less volatile than the S&P 500. Comparatively, Dell Technologies has a beta of -0.5, indicating that its share price is 150% less volatile than the S&P 500.
Dell Technologies beats Super Micro Computer on 8 of the 14 factors compared between the two stocks.
Super Micro Computer Company Profile
Super Micro Computer, Inc., together with its subsidiaries, develops and provides high performance server solutions based on modular and open architecture. It offers a range of server, storage, blade, workstation, and full rack solutions, as well as networking devices, server management software, and technology support and services. The company also provides a range of application optimized server solutions, including rackmount and blade server systems; and server subsystems and accessories comprising server boards, and chassis and power supplies, as well as other system accessories, including microprocessors, and memory and disc drives. In addition, it provides customer support services and hardware enhanced services. The company offers its products to data center, cloud computing, enterprise IT, big data, high performance computing, and Internet of Things/embedded markets. It sells its server systems, and server subsystems and accessories through direct sales force, as well as through distributors that comprise value added resellers and system integrators, and OEMs. The company has operations primarily in San Jose, California; the Netherlands; Taiwan; China; and Japan. Super Micro Computer, Inc. was founded in 1993 and is headquartered in San Jose, California.
Dell Technologies Company Profile
Dell Technologies Inc., formerly Denali Holding Inc., is a provider of information technology solutions. The Company operates through two segments: Client Solutions and Enterprise Solutions Group (ESG). The Client Solutions segment includes sales to commercial and consumer customers of desktops, thin client products and notebooks, as well as services and third-party software and peripherals closely tied to the sale of Client Solutions hardware. Its offerings include hardware, such as desktop personal computers, notebooks and tablets, and peripherals, such as monitors, printers and projectors, as well as third-party software and peripherals. The ESG segment includes servers, networking and storage, as well as services and third-party software and peripherals that are closely tied to the sale of ESG hardware. It designs, develops, manufactures, markets, sells and supports a range of products and services.
Receive News & Ratings for Super Micro Computer Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Super Micro Computer and related companies with MarketBeat.com's FREE daily email newsletter.