Critical Comparison: Presidio (PSDO) versus Tech Data (TECD)

Presidio (NASDAQ: PSDO) and Tech Data (NASDAQ:TECD) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.

Earnings & Valuation

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This table compares Presidio and Tech Data’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Presidio $2.82 billion 0.53 $4.40 million $0.05 322.40
Tech Data $36.78 billion 0.09 $116.64 million $9.11 9.02

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Presidio and Tech Data, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Presidio 0 1 4 0 2.80
Tech Data 0 2 6 0 2.75

Presidio currently has a consensus target price of $18.80, suggesting a potential upside of 16.63%. Tech Data has a consensus target price of $110.29, suggesting a potential upside of 34.28%. Given Tech Data’s higher probable upside, analysts clearly believe Tech Data is more favorable than Presidio.

Profitability

This table compares Presidio and Tech Data’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Presidio 4.11% 9.62% 2.34%
Tech Data 0.32% 12.83% 3.06%

Insider & Institutional Ownership

97.0% of Presidio shares are held by institutional investors. Comparatively, 95.6% of Tech Data shares are held by institutional investors. 2.7% of Presidio shares are held by insiders. Comparatively, 1.6% of Tech Data shares are held by 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

Tech Data beats Presidio on 7 of the 13 factors compared between the two stocks.

About Presidio

Presidio, Inc. is a United States-based company, which is an information technology (IT) solutions provider. The Company’s services include strategy and consulting, solutions design and deployment, managed services, asset maintenance and support, financing services, global services and carrier connectivity. It offers various solutions under categories, including Digital Infrastructure, including Networking, Collaboration, Enterprise Mobility, Internet of Things and Data Analytics; Cloud, including Data Center Modernization, Hybrid/Multi Cloud and Cloud Concierge; and Security, including Next Generation Risk Management, Infrastructure Security, Managed Security and Physical Security. The Company focuses on technologies, including Collaboration, Virtualization, Data Center, Mobility, Hybrid Cloud Computing, IT Convergence and Cyber Security. It focuses on industries, such as healthcare, education, media and entertainment, energy and utilities, and legal and professional services.

About Tech Data

Tech Data Corporation engages in the wholesale distribution of technology products. It offers endpoint portfolio solutions, including PC systems, mobile phones and accessories, printers, peripherals, supplies, endpoint technology software, and consumer electronics; and advanced portfolio solutions, such as storage, networking, servers, advanced technology software, and converged and hyper-converged infrastructure, as well as specialized solutions. The company serves value-added resellers, direct marketers, retailers, and corporate resellers. Tech Data Corporation sells its products to customers in approximately 100 countries in North America, South America, Europe, the Middle East, Africa, and the Asia-Pacific. The company was founded in 1974 and is headquartered in Clearwater, Florida.

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