Contrasting Seagate Technology (STX) & Pure Storage (PSTG)

Seagate Technology (NASDAQ: STX) and Pure Storage (NYSE:PSTG) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.

Dividends

Seagate Technology pays an annual dividend of $2.52 per share and has a dividend yield of 4.5%. Pure Storage does not pay a dividend. Seagate Technology pays out 61.2% of its earnings in the form of a dividend.

Volatility & Risk

Seagate Technology has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500. Comparatively, Pure Storage has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500.

Institutional & Insider Ownership

86.8% of Seagate Technology shares are held by institutional investors. Comparatively, 44.6% of Pure Storage shares are held by institutional investors. 0.9% of Seagate Technology shares are held by insiders. Comparatively, 15.3% of Pure Storage shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Seagate Technology and Pure Storage, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Seagate Technology 4 19 6 0 2.07
Pure Storage 1 6 15 0 2.64

Seagate Technology currently has a consensus target price of $52.86, suggesting a potential downside of 6.13%. Pure Storage has a consensus target price of $21.63, suggesting a potential downside of 8.64%. Given Seagate Technology’s higher possible upside, equities research analysts plainly believe Seagate Technology is more favorable than Pure Storage.

Profitability

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

Net Margins Return on Equity Return on Assets
Seagate Technology 7.76% 105.43% 14.74%
Pure Storage -17.36% -37.84% -18.58%

Earnings & Valuation

This table compares Seagate Technology and Pure Storage’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Seagate Technology $10.77 billion 1.50 $772.00 million $4.12 13.67
Pure Storage $1.02 billion 5.30 -$177.60 million N/A N/A

Seagate Technology has higher revenue and earnings than Pure Storage.

Summary

Seagate Technology beats Pure Storage on 9 of the 14 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. The company manufactures and distributes hard disk drives, solid state drives and their related controllers, solid state hybrid drives, and storage subsystems. Its products are used in enterprise servers and storage systems applications; client compute applications, primarily for desktop and mobile computing; and client non-compute applications, including various end user devices, such as portable external storage systems, surveillance systems, network-attached storage, digital video recorders, and gaming consoles. The company offers external backup storage solutions under the Backup Plus and Expansion product lines, as well as under the Maxtor and LaCie brand names available in capacities up to 120 terabytes. It sells its products primarily to original equipment manufacturers, distributors, and retailers. Seagate Technology plc was founded in 1979 and is headquartered in Dublin, Ireland.

About Pure Storage

Pure Storage, Inc. engages in building a data platform that enables businesses to enhance performance and reduce complexity and costs worldwide. The company delivers its data platform through Purity Operating Environment, an optimized software for solid-state memory that offers enterprise-class storage and protocol services; FlashArray and FlashBlade optimized hardware products for solid-state memory to enhance the performance and density of flash, optimize its advanced software services, and reduce solution cost for customers; Pure1, a cloud-based management and support software; and FlashStack, a converged infrastructure solution. Its data platform is used for a range of storage use cases, including database applications, large-scale analytics, private and public cloud infrastructure, Webscale applications, virtual server infrastructure, and virtual desktop infrastructure; and helps customers scale their businesses through real-time and accurate analytics, increase employee productivity, improve operational efficiency, and deliver compelling user experiences to their customers and partners. The company serves large and mid-size organizations across various industries, such as cloud-based software and service providers, consumer Web, education, energy, financial services, government, healthcare, manufacturing, media, retail, and telecommunications through a network of distribution and channel partners. The company was formerly known as OS76, Inc. and changed its name to Pure Storage, Inc. in January 2010. Pure Storage, Inc. was founded in 2009 and is headquartered in Mountain View, California.

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